Bitcoin Price Prediction: BTC Bulls Eye $89K Barrier Ahead of New Year

Highlights:

• Bitcoin price moves sideways, as its daily trading volume slips 4%.
• Crypto investors bet on Polymarket that the Fed may leave the rate cuts untouched, with odds hitting 87%.
• The technical outlook shows building bullish momentum, as BTC bulls eye $89K barrier.

The Bitcoin price is up 1% to trade at $88,720 as the daily trading volume has dropped 4% to $32.36 billion. This follows as the investors who have bet on January rate cuts remaining untouched, standing at 87% on Polymarket. In the meantime, the majority of Fed officials are of the view that further reductions in interest rates are needed, provided that the inflation continues to decrease, as indicated by the minutes issued on Wednesday, December 30. The minutes show that policymakers cut the interest rate earlier this month to 3.5 to 3.75% in a 9-3 vote. 

FOMC Minutes Dec 10 2025 and Key Takeaways for 2026

The Federal Open Market Committee cut the federal funds rate by 25 basis points to 3.50–3.75 percent at its December meeting.

The decision passed 9-3, marking internal division and differing views on the balance between… pic.twitter.com/Z9ZA0mnloE

— Truflation (@truflation) December 30, 2025

Bitcoin Price Outlook

The price of BTC is currently at exchanging hands at $88,720, as the asset is moving sideways. Meanwhile, the market indicators are a signal of a lack of decision on the asset. The price of Bitcoin stabilized above the level of $100,800 support in April and May, and then BTC reached its all-time high (ATH) of approximately $126,200. But within no time, bulls were not able to maintain the upward trend, and the trend was overtaken by the bears, which pulled the asset down. 

The Simple Moving Averages (SMAs), including the 200-day SMA($107,011), which has crossed above the 50-day SMA($89,845), have also contributed to this downtrend when the death cross was drawn at the level of $110,471. The current BTC is lower than both SMAs, showing that sellers are fully in charge.

The BTC price followed with a downtrend before touching a crucial support level around the $81,000 level, and currently serves as a key demand level. After reaching this point at the end of November, Bitcoin is in a period of consolidation, as the BTC bulls eye $89K barrier.

Nonetheless, Bitcoin is exhibiting a breakout as trend indicators indicate minor bullish momentum. The Relative Strength Index has been moving around in the 44-50 sector, signifying ongoing consolidation. Currently, the RSI sits at 49.05, suggesting that the market is recovering and buyers are taking their positions.

BTC Bulls Eye $89,845 Resistance

Looking ahead, the BTC/USD 1-day chart outlook shows that the altcoin is currently in a tug-of-war. Both the bears and bulls are fighting for dominance. If bulls pick up from the last daily candle to maintain the upward move, and push BTC above the 50-day SMA ($89,845), the Bitcoin price could surge even more. This may see the Bitcoin price cross the $95,225 barrier as they target $107,100, within the 200-day SMA.

According to a popular crypto analyst, Michaël van de Poppe, BTC is currently testing the 21-day MA around $88,300 on the daily chart. A close above this could indicate an upside movement.

Another test of the 21-Day MA, another failure.

Let's see whether the markets are going to give a nice little surprise on New Years Day with a breakout of #Bitcoin above the 21-Day MA.

That's been the crucial trigger prior to previous rallies and that will be the crucial one… pic.twitter.com/QbyHCGEjLd

— Michaël van de Poppe (@CryptoMichNL) December 30, 2025

However, on the downside, if bears keep dominating, the price of BTC could drop back to the $77,556, which is now acting as stable support.