Bitcoin News Today: Bitcoin, Ethereum Near Inflection Point as Bull Run Fears Pullback

Market sentiment toward Bitcoin and Ethereum appears to be shifting as new analysis from 10x Research highlights potential signs of a trend reversal. The report, released on December 28, 2025, points to undercurrents that suggest the current bull phase may be nearing a critical juncture. Analysts are now watching closely for confirmation signals in key technical and fundamental indicators.

The findings are based on a combination of on-chain data, investor sentiment metrics, and macroeconomic factors. While both BTC and ETH have seen sustained growth in 2025, the report warns that recent patterns suggest a potential inflection point in the near term. This has raised concerns among investors and traders who are now reassessing their risk exposure.

Market participants are reacting with heightened caution, as the possibility of a trend reversal introduces a new layer of uncertainty. The report underscores the importance of monitoring price action, volume dynamics, and broader market correlations in the coming weeks. Any sharp deviation from current trajectories could trigger a reevaluation of market positioning.

Market Indicators and Investor Sentiment

10x Research has observed a divergence between price and on-chain metrics for both Bitcoin and Ethereum. While prices continue to rise, metrics such as the Net Unrealized Profit/Loss (NUPL) and the Bitcoin Days Destroyed (BDD) have shown signs of weakening. These signals suggest that some investors may be locking in gains or preparing for a potential pullback.

The report also highlights a shift in investor sentiment, particularly among institutional players. Positioning data indicates that long positions have reached levels typically associated with overbought conditions. This is a red flag for some analysts, who warn that such positioning can become a catalyst for a rapid reversal.

Retail traders, on the other hand, appear to remain optimistic. Social media sentiment and options data suggest that retail participation is still strong. However, this enthusiasm could fade quickly if macroeconomic conditions or regulatory developments introduce new headwinds.

Risks to the Outlook

One of the key risks identified by 10x Research is the potential for a macroeconomic slowdown. While inflation has moderated in recent months, central banks remain cautious, and any unexpected tightening could weigh on risk assets. This is particularly relevant for crypto markets, which tend to move in sync with equity and bond markets.

Another risk lies in the evolving regulatory landscape. Recent actions by the U.S. SEC and other global regulators have added a layer of uncertainty to the crypto space. A major enforcement action or regulatory overhaul could disrupt market dynamics and lead to increased volatility.

Technical breakdowns in key support levels for Bitcoin and Ethereum also pose a risk. The report notes that both assets are approaching critical levels where a failure could trigger a cascade of stop-loss orders and further downward pressure.

What This Means for Investors

Investors are advised to remain vigilant as the market approaches this potential inflection point. Diversification and risk management are becoming increasingly important, especially for those with significant exposure to crypto assets. Position sizing and stop-loss strategies should be reviewed regularly to mitigate potential losses.

For long-term investors, the current environment may still present opportunities, but only if there is a clear confirmation of a bottoming process. Short-term traders, however, may want to consider reducing exposure until more clarity emerges from both technical and macroeconomic data.

Market participants are also encouraged to monitor broader macroeconomic indicators, including employment data and central bank policy signals. These factors could influence the crypto markets more indirectly, but their impact could be significant.

As the year draws to a close, the coming weeks will be critical in determining the next phase of the BTC and ETH price action. Investors and traders are watching closely for any sign of a reversal or continuation.