Bitcoin is consolidating as gold leads, with $84,000–$85,000 and the 100-week EMA as key levels to watch. The cryptocurrency failed to break $90,000 in December, with sharp rejections near $85,000-87,000. Currently, Bitcoin is in a sideways pattern after a 30% pullback from its October all-time high of over $126,000.

The consolidation phase mirrors previous four-year cycle downtrends, signaling a potential major breakout or deeper correction in 2026. Gold and silver typically lead after market stress, followed by Bitcoin. The recent price action suggests Bitcoin may benefit from delayed risk rotation, as seen in past cycles.

Bitcoin’s Cost Basis Distribution (CBD) heatmap shows a significant supply cluster of over 940,000 BTC around $84,000–$85,000, the largest concentration since 2020. Historically, such supply zones have preceded strong uptrends, indicating potential bullish momentum for Bitcoin in the near future.

Bitcoin’s hash rate has declined since late October, raising concerns about miner stress due to rising energy costs. However, sustained hash rate declines have historically led to positive price action for Bitcoin, with the cryptocurrency posting gains roughly 77% of the time over 180 days following such declines.

Bitcoin’s weekly chart shows the importance of the current sideways range, with the cryptocurrency holding above its 100-week EMA support. Maintaining near this level could lead to a rebound towards the $97,000-98,000 zone. However, a break below the 100-week EMA may increase the risk of deeper pullbacks towards the $67,500-66,000 area.

Read more at Cointelegraph: Make-or-Break BTC Charts to Watch in 2026