Bitcoin has recently traded below $93,000, positioning itself within a descending channel. Key support levels are identified between $84,000 and $89,000, areas that have historically provided repeated accumulation windows for investors. This current market phase is being analyzed in the context of historical cycles, such as those in 2018 and 2022, which demonstrated that true bottoms typically take months to form rather than days. This observation aligns with the thesis presented by analyst IncomeSharks.
The Relative Strength Index (RSI) is currently near oversold territory, hovering around 35. Coupled with resilient long-term holder reserves, these indicators hint at a potential multi-month reversal setup as the market approaches 2026.
Macro, On-Chain & Market Structure Analysis
The price action of Bitcoin, spanning from March to December 2025, has been largely confined within parallel channels on charts. Critical support levels are situated around the $84,000 to $89,000 range, which have been tested on multiple occasions since July. Conversely, upper boundaries have capped rallies near $116,000. Candlestick patterns have consistently shown failures at resistance levels, accompanied by diminishing trading volume, which are classic indicators of exhaustion within a prolonged bull cycle.
IncomeSharks has emphasized that significant market bottoms are not formed quickly. The analyst stated, "Real bottoms take time, and the biggest mistake is thinking you have to be in a hurry otherwise you’ll miss it. Not only do you usually get multiple attempts but often multiple months if not longer." This perspective is supported by historical market behavior.
Historical Context and Current Market Drivers
The Bitcoin bear market of 2018 saw its bottom form after approximately six months of consistent decline, offering entry points between $3,200 and $6,400 before the subsequent surge in 2020. Similarly, the market capitulation in 2022 persisted for eight months, rewarding patient investors who avoided speculative traps driven by fear of missing out (FOMO).
Several factors are contributing to the current market sentiment. Macroeconomic headwinds, including persistent inflation data and regulatory discussions surrounding ETF outflows, alongside profit-taking following the halving event, are playing a role. On-chain metrics present a complex picture: while long-term holder reserves remain stable at 14.5 million BTC, indicating strong conviction, a recent 20% spike in exchange inflows suggests potential selling pressure.
Strategic Investment Approach
The daily Relative Strength Index (RSI) is approaching oversold levels at 35, and the MACD histogram is flattening, suggesting a potential shift in momentum if current support levels are maintained. For participants in the Web3 ecosystem and Decentralized Finance (DeFi) users, this market dip can be viewed as an opportunity for recalibration. Reduced gas fees on Ethereum, correlating with Bitcoin's decline, could stimulate adoption of layer-2 solutions. Additionally, Bitcoin's Ordinals protocol is experiencing renewed activity in NFT minting at more accessible price points.
IncomeSharks' advice highlights that market bottoms are typically gradual processes rather than rapid recoveries. Implementing a dollar-cost averaging (DCA) strategy into the identified support zones, such as $85,000–$90,000, can effectively mitigate risk and leverage volatility. As the market looks towards 2026, potential catalysts such as evolving U.S. crypto policy could further influence the landscape, potentially benefiting patient investors.
In summary, Bitcoin's current chart patterns are not indicative of a terminal decline but rather a call for strategic discipline. A hasty entry may lead to buying at unfavorable prices, whereas a patient approach can position investors to capitalize on future upward movements. Given the likelihood of multiple retests of support levels, this period presents an opportunity for accumulation without excessive risk.