Bitcoin Faces Selling Pressure at Start of 2026 Amid Concerns Over Deepening Annual Losses
Bitcoin starts 2026 down nearly 10% year-on-year, facing selling pressure and may drop further; long-term target remains $98,000.
New York | EcoPulse24
The leading cryptocurrency, Bitcoin, started the new year on a downward trend, trading at $88,485 on Friday, January 2. It fell by $250, or 0.28%, compared to the previous session, reflecting cautious investor sentiment at the year's outset.
Price Performance and Outlook
Technical analysis reveals clear structural pressures:
- Monthly performance: Bitcoin lost about 5.30% of its value over the past four weeks.
- Annual performance: The currency recorded a sharp 9.83% decline over the past 12 months, raising questions about its ability to regain momentum quickly.
- Short-term outlook: Analytical models indicate a continued decline, with prices expected to reach $87,578 by the end of the current quarter.
EcoPulse24 Analysis: Current figures confirm that Bitcoin is undergoing a severe correction, rather than the bullish wave previously anticipated. The cryptocurrency’s break below key support levels and its nearly 10% annual decline indicate a shift in liquidity toward more stable assets at the start of 2026. Despite optimistic long-term forecasts placing Bitcoin near $98,000 within a year, traders are advised to closely monitor the $87,000 support level - a breach could trigger a broader wave of selling.
FAQ
Why did Bitcoin fall by nearly 10% over the past year? The decline is attributed to global regulatory pressures, changing monetary policies, and widespread profit-taking after the 2025 peak, causing the currency to lose its historical momentum.
What is the price outlook for Bitcoin by the end of Q1 2026? Macroeconomic models suggest a gradual decline to around $87,578, barring significant changes in cash flows into digital assets.
Is Bitcoin still capable of breaking the $98,000 barrier? Analysts maintain the long-term price target of $98,179 for the coming year, contingent on the market's ability to absorb current selling pressure and return to sustainable growth in the second half.
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