Technical analysis by Trade_and_Chill- about Symbol BTC on 12/31/2025

Bitcoin is currently moving through a sideways corrective phase after failing to hold its previous peak. This shift is not driven by a single factor, but rather by a combination of capital flows, market psychology, and profit-taking at the late stage of a short-term rally. From a flow perspective, several institutions and companies that previously showed strong support for Bitcoin have slowed or paused their buying activity, signaling caution after the rapid price appreciation. This has created short-term psychological pressure, especially for short-term traders and the derivatives market. On the other hand, long-term institutional demand has not disappeared. Some large funds and corporations continue to accumulate BTC during pullbacks, indicating that confidence in the long-term bullish thesis remains intact. This is a key reason why Bitcoin is not collapsing, but instead undergoing a controlled correction. On the macro side, the broader crypto market is still influenced by interest rate expectations and global liquidity conditions. As long as expectations for monetary easing remain on the table, Bitcoin continues to be viewed as a long-term alternative asset, even if short-term volatility persists. From a market structure standpoint, recent declines appear to be corrective rather than a trend reversal. Price action is actively flushing out FOMO positions and rebalancing supply and demand before a clearer directional move emerges. At this stage, BTCUSDT is not in a straight-line bull run, but there is also no clear signal that the long-term uptrend is over. This is a market that rewards patience. Both primary scenarios shown on the chart remain valid, and a breakout in either direction would present a strong opportunity. I lean toward the bullish scenario—what’s your view?