Bitcoin Faces 'Boring Sideways' Grind in Coming Months: CryptoQuant CEO

Bitcoin’s price has remained within a defined range in early 2026, as market participants await clearer directional momentum. Despite a strong start to the year for U.S. spot Bitcoin ETFs, which pulled in over $1.2 billion in inflows during the first two trading days, the price of Bitcoin has struggled to break past key resistance levels. Analysts suggest that the asset is entering a period of consolidation, with mixed sentiment reflecting both institutional confidence and lingering macroeconomic uncertainty.

The ETF inflows were led by BlackRock’s iShares Bitcoin Trust (IBIT), which continued to dominate the market. Morgan Stanley also entered the space with its own ETF filings, reinforcing the institutional interest in crypto assets. These developments signal a structural shift in Bitcoin demand, with on-chain data suggesting ETF flows are steadily absorbing circulating supply.

At the same time, Bitcoin’s price has fluctuated around $90,000 to $95,000, with traders watching closely for a breakout. The cryptocurrency experienced a sharp decline at the end of 2025 due to thin liquidity and year-end positioning. However, the easing of those pressures has allowed Bitcoin to stabilize above $90,000, where it has held for several days.

Why Did Bitcoin ETFs Attract Major Inflows?

The early 2026 inflows into Bitcoin ETFs reflect a combination of investor psychology and macroeconomic expectations. The “clean-slate effect” of a new year appears to have drawn renewed appetite for digital assets, particularly among institutional investors. Inflows on January 5 alone reached $697 million, the highest single-day figure in three months.

This trend has been supported by broader market conditions. The end of tax-loss harvesting in late 2025 removed a key source of selling pressure, while expectations of looser monetary policy and potential dovish appointments at the Federal Reserve have encouraged risk-on behavior. Additionally, a technical relief rally following a 35% drawdown from October highs has created a statistically favorable environment for a rebound.

What Are the Key Price Levels and Market Indicators to Watch?

Bitcoin’s near-term price action is being closely monitored around key resistance and support levels. Traders are watching $94,500 and $91,500 as critical thresholds for determining the next phase of price direction. The cryptocurrency rejected $94,500 in early January, printing its first red candle of the year, before rebounding slightly. A sustained move above $95,000 could signal renewed bullish momentum, while a breakdown below $91,500 could open the door for further declines.

Market sentiment has also shifted from extreme fear to cautious optimism. The Crypto Fear & Greed Index rose to 41, its highest level since October 2025, indicating a rapid shift in sentiment following the ETF-driven rally. This suggests that institutional confidence is growing, though volatility and macroeconomic uncertainty continue to influence market behavior.

What Do Analysts Expect for Bitcoin’s Short- and Long-Term Outlook?

Analysts have offered a range of potential scenarios for Bitcoin in 2026, reflecting the mixed signals from the market. CryptoQuant CEO suggests a "boring sideways" grind is likely in the coming months, with prices potentially trading between $80,000 and $140,000 as macro uncertainty persists.

On the other hand, some industry experts remain bullish on the long-term potential of Bitcoin. Historical patterns suggest that down years have often preceded strong rallies. For example, after negative returns in 2014, 2018, and 2022, Bitcoin delivered gains of over 35%, 95%, and 156% in the following years, respectively. If this pattern holds, 2026 could see a recovery from the 2025 bear market.

However, the path to such a rally is not without risks. Analysts warn that a prolonged bear market could mirror historical post-halving patterns from 2014, 2018, and 2022. Some predict Bitcoin could bottom around $60,000 before resuming a longer-term upward trend.

For now, the market appears to be in a consolidation phase. While ETF inflows and institutional interest remain strong, macroeconomic conditions, geopolitical tensions, and regulatory developments will continue to shape Bitcoin’s trajectory in 2026.