Bitcoin, the world’s largest cryptocurrency, recently dropped from its yearly high of $94,762 to $92,700, marking roughly a 2.18% decline. This move has raised short-term concerns, especially after Bitcoin ETFs saw a notable inflow of $697.2 million on January 5.
Despite it, Veteran financial trader Matthew Dixon believes this pause may be setting the stage for the next major move.
Bitcoin Market Structure After the All-Time High
In a recent tweet post, Matthew Dixon says that this recent decline from the all-time high is a normal correction rather than a trend breakdown.
On the daily chart, Bitcoin appears to have completed an ABC corrective pattern, a common structure showing profit-taking rather than panic selling. After this correction, Bitcoin moved into a falling wedge pattern, which is often seen as a bullish continuation setup.
At the same time, the RSI has reset from oversold levels, which suggests selling pressure has cooled and momentum is stabilizing.
Long-term holders are no longer selling aggressively, while short-term holders with roughly holding BTC for more than 150 days are stepping in near key levels. This shift shows buyers are still active, and the overall market structure remains constructive.
Key Bitcoin Levels to Watch In Q1 2026
From a support perspective, Dixon points to $82,000–$85,000 as the key support zone. As long as the bitcoin price stays above this range on daily closes, the overall uptrend remains safe.
On the upside, Bitcoin faces several resistance zones. The first hurdle sits between $95,000 and $98,000, where price has struggled recently. A successful break above this range could open the door to $108,000–$112,000, a level tied to a previous breakdown.
Matthew Dixon’s Q1 Bitcoin Outlook
Looking ahead to Q1, the outlook remains constructive. January is expected to stay volatile, with prices moving within a broad range. February could bring a push above $100,000, helping momentum build.
By March, if momentum continues to build, a retest of the all-time high zone between $120,000 and $128,000 becomes possible later in the quarter.
Institutional Moves Add Long-Term Support
Beyond charts, institutional activity is adding strength to Bitcoin’s long-term story. Morgan Stanley, one of the world’s leading financial firms, has filed to launch a Bitcoin Trust.
Other major banks, including Goldman Sachs, JPMorgan Chase, and Citigroup, are also expanding crypto-related services, from trading desks to blockchain-based custody and settlement.
This move signals a shift from testing crypto exposure to offering direct access for investors.
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