Bitcoin (BTC) began the week with a sharp rebound that briefly lifted the world’s largest cryptocurrency back toward the $74,000 mark on Wednesday for the first time in more than a month. However, as the week comes to a close, that momentum has faded, with BTC sliding back to roughly $68,260.
Even with the choppy price action, on-chain analytics firm Amber Data argues that the broader outlook for Bitcoin remains constructive. In its latest market report, the firm suggests that new all-time highs are still possible this year.
Post-Liquidation Reset
Amber Data describes Bitcoin as entering 2026 in an unusual position. The market, it says, has been “de-risked” following October’s liquidation event, which they assert flushed out excessive leverage from the market.
In the report, they contend that open interest had climbed to “unsustainable levels,” the basis trade had become overcrowded, and funding rates reflected stretched positioning.
When headlines surrounding President Donald Trump’s tariff policies hit the market, the overleveraged structure was unable to withstand the selling pressure. The result was a cascade of liquidations that wiped out weak hands and reset positioning.
While painful, the correction served a purpose. Valuations have since normalized, leverage has been largely cleared from the system, and the Bitcoin market structure appears healthier, Amber Data noted.
Yet the recovery remains fragile. Liquidity is still impaired, and the carry trade — once a major driver of activity — is no longer especially attractive. In Amber Data’s view, the market is now structurally sound but lacks a clear catalyst to define its next major move.
‘Muddle Through’ Phase
In its base case, which it assigns a 50% probability, Bitcoin trades between $90,000 and $120,000. This outcome envisions extended consolidation until a meaningful macro catalyst emerges.
Under this “muddle through” scenario, conditions neither worsen dramatically nor improve significantly. Volatility compresses, enthusiasm cools, and both bullish breakout expectations and bearish collapse predictions are repeatedly frustrated.
Early signs supporting this scenario would include basis annual percentage rates recovering to 8–10%, spot Bitcoin ETF inflows turning consistently positive, order book depth returning toward pre-crash conditions, and funding rates stabilizing in positive territory.
25% Chance Bitcoin Breakout To $180,000Amber Data assigns a 25% probability to a more optimistic outcome, with Bitcoin climbing between $120,000 and $180,000. In this bull case, institutional participation accelerates alongside sovereign adoption, creating a feedback loop of expanding flows.
Early confirmation signals would include weekly Bitcoin ETF inflows exceeding $1 billion, basis rates expanding beyond 15% as leverage demand surges, and new accumulation cohorts appearing in HODL wave data, indicating fresh capital entering at scale.
Bear Case Targets $60,000On the downside, Amber Data assigns a 20% probability to a bearish scenario in which Bitcoin trades between $60,000 and $80,000. This would occur if macroeconomic conditions deteriorate more sharply than currently expected and global markets shift decisively into risk-off mode.
Warning signs would include sustained ETF outflows exceeding $1 billion per week, basis yields collapsing below 3%, widespread stablecoin redemptions signaling capital flight, and a potential test of the $80,000 ETF cost basis level.
Finally, the firm outlines a 5% probability “volatility and chop” scenario, in which Bitcoin trades between $75,000 and $110,000 with no sustained directional trend.
Indicators would include sharply fluctuating funding rates, repeated spikes and collapses in open interest as positions are liquidated on both sides, and inconsistent ETF flows alternating between inflows and outflows without a clear pattern.
Featured image from OpenArt, chart from TradingView.com