Bulls in Despair as Bitcoin Erases 2026 Gains

Bitcoin bulls started the year on a high note, pushing the flagship cryptocurrency to nearly $95,000. However, the rally quickly faded.

The flagship coin is now on the cusp of losing the make-it-or-break-it $90,000 level once again.

Bitcoin has failed to hold above the critical $90,000 level three distinct times since November 2025.

The current despair among bulls is driven by the realization that the New Year’s rally was likely a “bull trap” rather than a structural reversal.

CME gaps

If the breakout does not immediately confirm with strong momentum, the bullish structure is invalidated.

The CME market closes on weekends and holidays. It leaves a literal blank space or “gap” on the chart when the market reopens at a significantly different price than it closed.

Traders focus on these because of the “gap fill theory.” The market has a psychological and algorithmic tendency to “fill” these gaps.

Bitcoin traders are currently focused on the gap between $90,550 – $91,550 that Bitcoin is seemingly filling right now. If Bitcoin finds support here and “bounces” after filling the gap, the bullish trend might resume. If it slices through, it confirms weakness.

If the support at this level breaks, this lower gap (($88,110 – $88,820) becomes the next logical target for bears.