Bitcoin's holiday rally came to an abrupt halt on Christmas Day, with the price peaking at $99,898 before retreating to its current level of $95,400.

 The brief spike had investors dreaming of surpassing the $108,378 all-time high, but like a Christmas cookie left out too long, the market crumbled—reminding everyone that Bitcoin isn’t immune to the world’s economic hiccups.

Just days earlier, on December 21, Bitcoin experienced a sharp sell-off that led to its fall towards the lower bottom of $90,712. 

The drop coincided with broader market declines as the Federal Reserve issued a warning about persistent inflationary pressures. 

Adding to the bearish sentiment, BlackRock’s market outlook further spooked investors, creating a ripple effect that saw Bitcoin follow the traditional risk asset playbook.

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BTC/USD. Source: TradingView

Bitcoin is holding steady around $95,400, comfortably perched near the 20 EMA, but it's at a critical turning point. 

A climb above the $96,000-$98,000 range could bring the bulls back into action, while a drop below $90,712 might open the door for the bears.

Bitcoin price Prediction: $90,000 Support Under Pressure

Bitcoin’s price action seems to be leaning toward more downside, still wobbling from the aftermath of the recent market tumble—but clearly not in a hurry to bounce back.

Meanwhile, Monday saw the average transaction size on the Bitcoin network skyrocket to $306,101, hitting a two-year high.

This surge in transaction size points to heightened whale activity, likely signaling large-scale sell-offs. When the big players start splashing around, the waves tend to get choppy for everyone else.

At the moment, Bitcoin is hovering near the lower boundary of the Donchian Channels at $90,500—a key support level holding things together. Should this level give way, it could open the floodgates for intensified selling, with the next critical support waiting down at $88,000.

The bears seem to be in charge, with the Bull Bear Power (BBP) indicator staying firmly in negative territory for six straight days—talk about commitment. There also seems to be a great migration of BTC from wallets to exchanges over the last one week as reported by markets pundit Ali_charts:

On the upside, resistance stands at $99,426, smack in the middle of the Donchian Channels. Breaking above this could hint at a bullish recovery, potentially setting the stage for a run toward the $108,353 upper resistance.

For now, Bitcoin’s fate rests on its ability to hold above $90,500. A close below this level could solidify bearish predictions, while a sustained move above $99,426 might flip the script, signaling the start of a recovery and possibly calming some nerves.

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