Bitcoin’s Rocky Road: What to Expect in Early 2026

Bitcoin’s Rocky Road: What to Expect in Early 2026

Bitcoin’s Not-So-Great Goodbye to Q4

So, Bitcoin decided to throw a little tantrum as it closed out the fourth quarter of 2025, and let me tell you, it’s not pretty. After having a glitzy moment at around $126,200 in early October, this cryptocurrency superstar has taken a nosedive, falling by a whopping 30%. Ouch!

Can We Get a Retry?

Since that epic peak, Bitcoin has been flailing about trying to hit the $92,000 mark but keeps getting the cold shoulder. Investors are starting to look more like nervous Nellies, and who can blame them? Crypto expert GugaOnChain has weighed in, saying that the not-so-awesome close of Q4 could mean a continuation of the bear blues well into early 2026. Fun times ahead!

Bearish Signals Everywhere

According to GugaOnChain, the numbers are looking grim. The BTC: Quarterly Price Performance has dipped by -19.15% in Q4, fueling fears that we’re in for a long, dark night of the soul. Several indicators are waving red flags, as the market seems less than ready for a glow-up from its current state.

What the Numbers Say

Let’s talk stats for a sec. The Spent Output Profit Ratio (SOPR) is hanging out below 1 at 0.99, which basically means folks are selling their Bitcoin at a loss. Not exactly a sign of a thriving party! And short-term holders? They’re feeling the burn too with an MVRV (MVRV-STH) below 1 at 0.87. Translation: They’re underwater and probably looking for a lifeboat.

Fear is the Name of the Game

Adding to the doom and gloom, we see that a hefty 35.66% of Bitcoin is currently in loss territory, which is enough to make anyone lose their lunch. The crypto crowd is gripped by “extreme fear,” as demonstrated by the Fear & Greed Index, which has plummeted to a disheartening score of 20.

The Market’s Mood: No Cheers Here

But wait, there’s more! GugaOnChain also points to other indicators confirming that we’re stuck in a bearish wonderland. The Market Cap Growth Rate is firmly in negative territory, sitting at -11.65%. Looks like market growth is in hibernation mode!

Institutional Investors: Not So Interested

When it comes to institutional flows, the vibes are definitely off. US Bitcoin spot ETFs saw a staggering $825.7 million in net outflows just between December 18 and December 24. Talk about a mass exit! Meanwhile, the Coinbase Premium Gap is sitting pretty in the negatives at –66.11, suggesting that US investors aren’t feeling the urge to buy compared to their friends across the pond.

What’s Next for Bitcoin?

Putting all these puzzle pieces together, GugaOnChain is gracing us with a prediction: the crypto market will likely languish in bear territory for the next two to three months. So, buckle up, investors—corrections are on the horizon for the first quarter of 2026!

And as we stand here today, Bitcoin is trading at $87,436, down a mere 0.42% in the last day. Oh joy, what a rollercoaster ride!

Back to Top