Bitcoin Bulls in Dismay as Gains from 2026 Fade Away

Bitcoin began 2026 with a rise to nearly $95,000.
The cryptocurrency is nearing a critical support level of $90,000 again.
Previous attempts to hold this level since November 2025 have failed.
The recent rally is viewed by many as a "bull trap."
Traders are closely monitoring price gaps and potential support levels.

Key Takeaways

Bitcoin began 2026 with a rise to nearly $95,000.
The cryptocurrency is nearing a critical support level of $90,000 again.
Previous attempts to hold this level since November 2025 have failed.
The recent rally is viewed by many as a "bull trap."
Traders are closely monitoring price gaps and potential support levels.

Bitcoin's bullish start in 2026 has quickly lost steam, as the cryptocurrency threatens to drop below crucial support levels. Traders are analyzing price gaps on charts while keeping an eye on potential targets for both bulls and bears.

Bitcoin Bulls in Dismay as Gains from 2026 Fade Away

Current Bitcoin Market Situation

Bitcoin entering 2026 saw a promising surge, climbing close to $95,000. However, that optimism was short-lived as the coin is now at risk of falling below the significant $90,000 level once more. Since November 2025, Bitcoin has struggled to maintain this essential price point, failing to hold above it on three separate occasions.

Recent sentiment among Bitcoin bulls is marked by disappointment, as many believe the earlier rally might have constituted a "bull trap" rather than representing a true reversal in trends. An absence of strong momentum to confirm the breakout raises concerns that the bullish structure may no longer be valid.

Understanding Price Gaps

In the cryptocurrency market, the CME (Chicago Mercantile Exchange) is closed during weekends and holidays, creating gaps in price charts when trading resumes at significantly different prices. Traders pay close attention to these gaps, known as the "gap fill theory," which suggests that the market has a psychological tendency to "fill" these gaps.

Currently, Bitcoin traders are focusing on the price gap between $90,550 and $91,550, which the cryptocurrency appears to be addressing at this moment. If Bitcoin can find support in this area and "bounce" after filling the gap, the bullish trend could resume. However, if it fails to hold and drops through this level, it would signal weakness in the market.

Potential Targets for Bitcoin

Should the critical support level break, the next logical target for bearish traders would be the lower gap lying between $88,110 and $88,820.

Recently, renowned trader John Bollinger has forecasted that Bitcoin (BTC) could potentially rise to $107,000. Yet, he also warned that if it fails to maintain this trajectory, the cryptocurrency could be "back to the trenches," indicating a return to lower price levels.

As the market continues to unfold, traders will be watching closely for signals that could indicate the next move for Bitcoin in the ongoing cryptocurrency landscape.