Bitcoin consolidates between $88,000 and $92,000 as decline remains much milder than in previous cycles

Bitcoin is consolidating between $88,000 and $92,000, while the decline after the cycle peak remains relatively mild. The cryptocurrency was trading at the $90,444 level.In the past 24 hours, Bitcoin and Ethereum are down 0.55% and 0.93% respectively. Among the major altcoins, XRP, Solana, Dogecoin, Cardano and Hyperliquid have fallen by up to 7% in the past 24 hours, while BNB and Tron have risen by 1.27% and 1.57% respectively over the same period.

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Riya Sehgal, research analyst at Delta Exchange, said the crypto market started 2026 on a mixed note, with total capitalization adding nearly $120 billion since Jan. 1 as traders shift to altcoins, which now account for 50% of total volume, surpassing Bitcoin by 27% and Ethereum by 23%. Despite the improving sentiment, markets remain range-bound, awaiting a new catalyst.

Sehgal further said that the post-cycle peak decline remains relatively mild at around -27%, compared to the deep -75% to -92% corrections of previous bear markets. With macro catalysts remaining critical, investors are eyeing the potential US government shutdown on January 30 and the Fed’s interest rate decision, with a 95% probability of no change.

Over the past week, Bitcoin and Ethereum rose 1.13% and 0.03% respectively. During the same period, major altcoins including XRP, BNB, Solana, Tron, Dogecoin and Cardano rose by more than 3%, while Hyperliquid fell by 0.83%.

Nischal Shetty, founder of WazirX, said crypto markets have absorbed global macro signals over the past 24 hours with measured trading and selective responses, underscoring the growing sophistication with which digital assets interact with broader economic trends.

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Shetty further said that technical indicators are showing neutral momentum, with the RSI near 51.54 and price trading around key moving averages including the 50-SMA at $89,392.75 and the 200-DMA at $106,344.48. Support and resistance clusters around pivot zones have limited sharp moves, reflecting consolidation rather than a targeted breakout.