Bitcoin slipped under the 90,000 dollar mark into Sunday’s weekly close as analysts warned that the market is nearing a major volatility expansion.
The asset spent most of the weekend in a tight range, failing to generate a breakout in either direction.
Market watchers say the prolonged compression is unlikely to continue much longer.
Bitcoin’s volatility has fallen to extreme lows, creating conditions for a sharp directional move.
Traders Expect Imminent Breakout as Range Tightens
Data showed Bitcoin struggling to overcome resistance throughout the week.
Repeated attempts to push higher were rejected, keeping the asset locked in a narrow band.
Analyst Aksel Kibar described the setup as an “extreme low volatility” pattern.
He said this typically signals that “a directional move [is] around the corner.”
Kibar outlined two potential outcomes.
The first is a breakdown from the current bear flag formation on the daily chart, which could send Bitcoin toward the 73,700 to 76,500 dollar area.
The second scenario is a bullish breakout.
Kibar said a move above 94,600 dollars could allow Bitcoin to test the 100,000 dollar level.
Other traders echoed the same caution.
Analyst Crypto Tony said, “$90,600 and $89,800 is our range,” adding that traders should “Trade the breakout only.”
Analysts Warn That Bitcoin May Already Be in a Bear Market Phase
New research from CryptoQuant argues that Bitcoin may already be in the early stages of a bear market.
The analysis points to declining moving averages, weakening buy volume and repeated failures to break above resistance.
Contributor Pelin Ay wrote that “Price reactions are being sold at declining moving averages, meaning these averages have turned into dynamic resistance levels.”
She noted that buying volume “fails to confirm upside moves,” while selling volume remains stronger.
Ay described the current structure as a reaction phase within a broader downtrend.
She wrote, “The structure remains bearish, and upward moves lack conviction.”
The analysis also compared Bitcoin’s performance with Ether, noting that although Ether staged a stronger recovery from recent lows, momentum remains fragile.
Ay said “For now, the Bitcoin rally appears to be over,” adding that a deeper move toward the 50,000 dollar region is possible before the next major uptrend.
Growing Calls for a Significant Correction
Throughout December, traders and analysts have increasingly discussed the possibility of Bitcoin revisiting far lower support zones.
Many see current price action as unsustainable without stronger inflows.
Bitcoin’s sideways trading has been dominated by consistent selling at key resistance points.
With volatility compressed and momentum weakening, the market may soon choose a definitive direction.
Some traders believe that if Bitcoin fails to hold support, a slide toward the mid-70,000s is likely.
Others warn that a deeper correction to the 50,000 dollar range cannot be ruled out.
For now, Bitcoin remains stuck between tight resistance overhead and fragile support below.
With volatility historically low, analysts expect that the next major move — up or down — is approaching quickly.
