Bitcoin, the world’s largest cryptocurrency, recently experienced a drop from its yearly high of $94,762 to $92,700, representing a decline of approximately 2.18%. This movement has sparked short-term concerns, particularly following a significant inflow of $697.2 million into Bitcoin ETFs on January 5.
Despite this, seasoned financial trader Matthew Dixon believes that this pullback could be setting the stage for the next major move.
Bitcoin Market Structure After the All-Time High
In a recent tweet, Matthew Dixon suggests that the recent decline from the all-time high is a typical correction rather than a breakdown in trend.
On the daily chart, Bitcoin seems to have completed an ABC corrective pattern, indicating profit-taking rather than panic selling. Following this correction, Bitcoin has entered into a falling wedge pattern, often viewed as a bullish continuation setup.
Moreover, the RSI has reset from oversold levels, indicating a decrease in selling pressure and stabilization in momentum.
Long-term holders are not selling aggressively, while short-term holders who have held BTC for more than 150 days are entering at key levels. This shift demonstrates that buyers are still active, and the overall market structure remains positive.
Key Bitcoin Levels to Monitor In Q1 2026
From a support standpoint, Dixon highlights $82,000–$85,000 as the crucial support zone. As long as the bitcoin price remains above this range on daily closes, the overall uptrend remains intact.
On the upside, Bitcoin is facing several resistance zones. The initial obstacle lies between $95,000 and $98,000, where the price has faced challenges recently. A successful breakthrough above this range could pave the way for $108,000–$112,000, a level linked to a previous breakdown.
Matthew Dixon’s Q1 Bitcoin Forecast
Looking forward to Q1, the outlook remains positive. January is anticipated to be volatile, with prices fluctuating within a wide range. February could witness a surge above $100,000, aiding in momentum building.
By March, if the momentum continues, a retest of the all-time high zone between $120,000 and $128,000 could become feasible later in the quarter.
Institutional Activities Enhance Long-Term Support
Besides technical analysis, institutional involvement is strengthening Bitcoin’s long-term narrative. Morgan Stanley, a prominent financial institution, has filed to launch a Bitcoin Trust.
Other major banks like Goldman Sachs, JPMorgan Chase, and Citigroup are also expanding their crypto-related services, ranging from trading desks to blockchain-based custody and settlement.
This development signifies a shift towards providing direct access for investors rather than merely exploring crypto exposure.
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