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The Bitcoin price has plunged 3% in the last 24 hours to trade at $86,331 as of 3.45 a.m. EST on a 19% increase in daily trading volume to $46.4 billion.
The plunge in the BTC price comes as asset manager Grayscale says Bitcoin remains in a bull market and could hit a new all‑time high (ATH) within the next six months.
JUST IN: Grayscale says Bitcoin could set new all-time highs in 2026 as the 4-year cycle model breaks
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— Bitcoin Archive (@BitcoinArchive) December 2, 2025
Grayscale argues that the current correction, which has seen Bitcoin fall more than 30% from its peak, fits within normal bull‑market pullbacks and does not signal the end of the uptrend.
The firm expects demand for “alternative value stores” to rise as governments struggle with high debt and long‑term inflation risks. A backdrop that favours Bitcoin over fiat currencies.
The asset manager also thinks the classic four‑year halving cycle is fading, with institutional flows and exchange‑traded products now playing a bigger role in driving prices.
Grayscale highlighted a clear shift in the U.S. regulatory climate over the past two years as well, including the launch of spot Bitcoin ETFs and the passing of the GENIUS Act on stablecoins.
The firm expects Congress to go further in 2026 with bipartisan crypto market‑structure legislation. This could “cement blockchain‑based finance” in U.S. capital markets and attract more professional investors.
Bitcoin Price Slides Below Moving Averages
On the daily chart, Bitcoin trades below both the 50‑day and 200‑day simple moving averages, which are clustered near $95,000 and $108,000.
That setup shows bears still control the short‑term trend. The 50‑day SMA is now acting as nearby resistance as well, and the 200‑day SMA is capping any stronger bounce.
The Fibonacci retracement drawn from the October high near $126,270 to the March low shows the price hovering just above the 0.618 retracement zone around $94,000 has now broken lower, pushing BTC toward a wide support band between roughly $74,500 and $86,000.
The recent candles show repeated rejection near $95,000 and lower highs since November, confirming a medium‑term downtrend. They also showing that selling momentum is slowing as the price moves deeper into support.
BTCUSD Analysis Source: Tradingview
Bitcoin technicals are neutral‑to‑bearish but no longer extreme. The daily Relative Strength Index sits around 36, just above oversold territory. This suggests limited room for aggressive downside before dip buyers return.
Meanwhile, the MACD line is below the signal line and in negative territory. However, the histogram bars are flattening, a sign that bearish momentum may be losing strength.
If Bitcoin holds above the lower support zone near $74,500 and the RSI starts to turn up, a rebound toward the 50‑day SMA around $95,000 looks possible over the next few weeks.
A clean break and daily close above that level would open the door to a move toward $106,000 and then the prior high near $126,000, in line with Grayscale’s view that a new all‑time high is possible within about six months.
However, if bears push BTC decisively below $74,500, the market could see a deeper correction, shaking out late bulls before a longer‑term recovery.
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