Bitcoin Faces Rare 3-Month Loss, Eyes January Bounce

Bitcoin is nearing the end of a challenging year, on the cusp of a third consecutive monthly decline. The cryptocurrency is currently hovering near $88,000, a notable retreat of approximately 30% from its October highs exceeding $126,000. This significant drop has impacted the broader crypto market, fueled by leveraged liquidations and selling pressure from long-term holders.

Despite the recent volatility, a potential recovery is on the horizon. Technical indicators suggest that Bitcoin's downtrend may be reversing, with a bullish outlook predicted for January 2026. Strategists anticipate that portfolio rebalancing in the upcoming month could inject renewed vigor into the market, potentially igniting a rally among bullish investors. This follows a year that began with several positive tailwinds for the crypto industry.

Looking ahead, expectations for 2026 are mixed, with some analysts predicting a more selective institutional demand rather than an immediate sharp breakout. The first half of the year is expected to be defensive, with potential drawdowns creating attractive entry points for a rally in the latter half of 2026. Price fluctuations might remain within a range of $80,000 to $100,000.