Crucial support levels are holding for Bitcoin, maintaining its position within the $88.5K–$90K zone. This sustained support aligns with a bullish Elliott Wave iv corrective pattern, preserving upside potential.
The price is now testing a significant resistance level at the 61.8% Fibonacci retracement, which is approximately $95K. This level has historically been pivotal for market reversals.
A key bullish trigger could be the formation of a higher low near $90K. Such a development would confirm a 1–2 setup within wave (c), potentially targeting upside beyond $100K.
In the volatile world of cryptocurrency, Bitcoin ($BTC) continues to captivate traders with its intricate price patterns. As of December 2025, the flagship asset has demonstrated remarkable resilience, maintaining support levels that could herald a significant bullish shift. According to a detailed Elliott Wave analysis shared by crypto research firm More Crypto Online, $BTC’s current positioning aligns with a larger corrective wave iv scenario, preserving upside potential despite recent pullbacks.
Elliott Wave Theory Explained: Impulses, Corrections & Market Psychology
Elliott Wave Theory, a cornerstone of technical analysis pioneered by Ralph Nelson Elliott in the 1930s, posits that market prices unfold in repetitive cycles driven by investor psychology. These cycles consist of impulsive waves (1-5) advancing the trend and corrective waves (A-B-C) against it. In the blue scenario highlighted in the latest chart, $BTC appears to be navigating the final stages of wave iv correction within a broader supercycle uptrend. The price has bounced from a critical support zone around 88,500-90,000 USD, now testing resistance near the 61.8% Fibonacci retracement—a golden ratio level often acting as a psychological barrier for reversals.
The Chart Breakdown: Support at $92K, Resistance at $95K, and What Comes Next
This 61.8% level, calculated from the recent high of approximately 106,000 USD, sits at around 95,000 USD, where selling pressure has historically intensified. Yet, the chart’s annotations reveal optimism: labeled zones (A, B, C) and sub-waves (W1, a, b) suggest an internal structure favoring continuation rather than collapse. If $BTC forms a higher low on the anticipated next pullback—potentially dipping to 90,000 USD—it could confirm a 1-2 setup within blue wave (c), targeting extensions toward 100,000 USD or higher in the short term.
Market context adds intrigue. With institutional inflows via spot ETFs steady and macroeconomic tailwinds like potential Federal Reserve rate pauses, $BTC’s macro narrative remains intact.
Macro Tailwinds: ETFs, Rate Pauses, and Institutional Demand
However, risks loom: a breakdown below 88,000 USD could invalidate the blue path, pivoting to the more bearish yellow scenario with deeper corrections to 80,000 USD. Yellow wave (C) would signal prolonged consolidation, testing the mettle of long-term holders.
For traders, this juncture demands vigilance. Short-term scalpers might eye bounces off the 92,000 support with tight stops, while swing players could position for the 1-2 impulse if volume surges on the upside. Long-term investors, undeterred by noise, see this as a healthy breather in Bitcoin’s march toward mainstream adoption—fueled by layer-2 scaling solutions and DeFi integrations.
As $BTC hovers in this pivotal range, the Elliott Wave lens underscores a timeless truth: markets reward those who decode the waves. Will support hold, igniting wave (c)? Or will resistance prevail? The chart awaits the next candle.