Bitcoin (CRYPTO:BTC) volatility intensified over the past week as prices swung sharply between resistance near $90,000 and support around $85,000, underscoring heightened market uncertainty.
Market data indicated repeated buying interest close to $85,000, forming a narrow yet unstable trading range that has dominated recent price action.
Despite a short-term rebound, broader sentiment remains fragile as Bitcoin continues to trade within a corrective trend that began in early October.
Analysts noted that investors remain cautious, with risk appetite dampened by declining trading volumes and persistent macro uncertainty.
Prominent market analyst Ted Pillows highlighted historical price structures that he believes could provide insight into Bitcoin’s next major move.
In a post shared on X on December 19, Pillows argued that Bitcoin’s current structure closely resembles a market setup last seen during the 2021–2022 cycle.
According to Pillows, this recurring technical pattern suggests Bitcoin could attempt to reclaim the $100,000 level in the near term.
His analysis identified the formation of a head-and-shoulders pattern, a structure often associated with significant trend shifts.
The left shoulder in the current cycle reportedly formed after Bitcoin peaked near $110,000 in January 2025.
This was followed by a rally to a new all-time high of approximately $126,100 in October, which Pillows identified as the head of the pattern.
Historical comparisons show a similar structure in 2021–2022, when Bitcoin recorded a left shoulder at $63,600 in April 2021 and a head at $69,100 in November 2021.
During that earlier cycle, the right shoulder developed in March 2022 near $48,433 before a prolonged downturn took hold.
Pillows suggested Bitcoin is now approaching the final corrective phase before the right shoulder forms near $100,000, implying potential short-term upside of around 13.6%.
However, analysts cautioned that head-and-shoulders formations are traditionally bearish and often precede sharp declines once completed.
In the 2021–2022 cycle, completion of the pattern was followed by a price collapse of nearly 50%, sending Bitcoin as low as $22,000.
Pillows projected that a similar outcome this cycle could see Bitcoin fall by roughly 35% after testing $100,000, with a potential bottom near $65,000.
Other market forecasts have echoed this caution, with several analysts warning that Bitcoin could revisit the $70,000 region if selling pressure intensifies.
Daily trading volume declined by 14.81% to roughly $44.83 billion, suggesting reduced participation despite the price rebound.
On-chain data showed more than 11,000 BTC transferred to exchanges during the week, signalling increased selling intent among holders.
Crypto analyst Ali Martinez reported that exchange balances rose from 2.753 million BTC to 2.764 million BTC, representing about 13.84% of the circulating supply.
At the time of reporting, Bitcoin price was $88,196.64.