Bitcoin weekly: Bulls, beware of traps

With stock markets strong, there is still room for bitcoin to bounce. Nothing has changed in the chart though, and the message remains the same: watch out for any rally to turn into a bull trap.

Also watch the accompanying chart analysis on YouTube.

On Thursday, CPI inflation in the US came in at 2.7%, much lower than the expected 3.1%. This perked stock markets back up, with the S&P 500 closing the week near all time highs. Like last week, the simple conclusion here is that stock markets remain strong, with no signs of a top being in just yet.

Bitcoin closed the week flat, the battle between permabulls and bears still ongoing. Judging by the narrative on social media, it seems more people are coming around to the idea that 2026 is going to be a bear market year in crypto.

However, what people in the news and on social media are saying should be regarded as mostly noise. In this analysis we focus on the charts, because the charts are the windows into what is actually happening in the market. And in the chart, the picture remains the same here: bitcoin is still consolidating after the breakdown five weeks ago.

Any bounce should be expected to be sold into, with major technical resistances at $100k and $109k. To the downside, a continuation to a lower low can find support at $72k-76k.

Starting this week, I will stop covering the bitcoin dominance chart in these weekly updates. My view on the bitcoin dominance has changed, and I no longer believe the concept of broad altseasons to be useful from a practical perspective. I will write more about this in a separate article.

That’s it for this week. Stay sharp, and Merry Christmas everybody!