Bitcoin Averages 100% Return After Down Years: Will The Pattern Repeat In 2026?
History shows Bitcoin’s rare down years have been followed by triple-digit rebounds, keeping 2026 firmly on traders’ watchlists. Bitcoin BTC $90,965 ended 2025 slightly in the red with a -6.36% return after a strong start earlier in the year. While the annual loss appears modest, historical patterns suggest that down years have often preceded some of Bitcoin’s strongest rallies.
Key takeaways:
Bitcoin has historically averaged close to 100% gains in the year following a down year.
Long-term models project a substantial target near $300,000 if liquidity conditions turn supportive.
Bitcoin history hints at upside after rare red years According to Jesse Myers, Bitcoin Strategy Head at Smarter Web Company, Bitcoin has shown a consistent tendency to recover sharply after negative annual closes. Data from the past decade highlighted four down years: 2014, 2018, 2022, and, most recently, 2025. #WriteToEarnUpgrade #Article4 #FYp
Cryptocurrencies, Bitcoin Price, Bitcoin Analysis, Adoption, Markets, United States, Cryptocurrency Exchange, Price Analysis, Market Analysis, Investment 101 Bitcoin's performance after a down year. Source: Jesse Myers/ X The years immediately following those drawdowns delivered gains of 35%, 95%, and 156% respectively. Averaged together, these recoveries approach 95%, rounded to a 100% historical benchmark. While past performance does not guarantee future results, the repetition of this pattern continues to shape expectations for 2026.
Adding to the longer-term bullish case, Bitcoin researcher Sminston With noted that Bitcoin’s base-case valuation for 2026 sits between $200,000 and $300,000. With’s Bitcoin Decay Channel model uses quantile regression on historical price data to account for diminishing volatility across cycles.
Cryptocurrencies, Bitcoin Price, Bitcoin Analysis, Adoption, Markets, United States, Cryptocurrency Exchange, Price Analysis, Market Analysis, Investment 101 Bitcoin Decay Channel. Source: Sminston With/X With explained that the model’s oscillator remains near 20%, a level historically associated with early expansion phases. The projected 2026 target zone contrasts with Bitcoin’s stagnation near $88,000 at the end of 2025, which With attributed to delayed liquidity cycles rather than a definitive cycle peak.
BITCOIN 'NOT LIKELY' TO MAKE NEW ALL-TIME HIGH IN 2026, SAYS NEW RESEARCH
Bitcoin 'not likely' to make new all-time high in 2026, says new research Bitcoin long-term short signals from trading tools led analysis to conclude that no new BTC price all-time high would come this year.
BTC$91,261 faces a new “battle” for control before bulls trigger the next round of BTC price gains, but the long-term outlook is grim. KEY POINTS: Bitcoin short-term and long-term perspectives contrast as bears stay in control on high timeframes.A golden cross on the day chart does not cancel out short signals for the rest of the year.A new all-time high is “not likely” as a result. $87,500 retest next stop for BTC price In his latest X analysis on Wednesday, KEITH ALAN, cofounder of trading resource Material Indicators, forecast a retest of the 2026 yearly open. Bitcoin price action is now caught in a tussle between buyers and sellers, but a return to $87,500 is “not a matter of if, but when,” Alan said.
“FireCharts shows a realtime battle unfolding in the $BTC order book,” he said. “Bulls are trying to defend support at the 2026-01-05 Timescape Level, but Whales appear to be looking for a support test closer to the Yearly Open before a Golden Cross forms on the D chart to trigger the next rally.”
That cross involves the 21-day and 50-day simple moving averages (SMAs). The former crossing above the latter would indicate renewed strength on lower timeframes. Before that, however, a support retest of the yearly open is on the wall. “The battle for it is happening right now,” Alan said, adding: “If it doesn't happen in the next 24 hours, I expect it will happen after the Death Cross forms on the Weekly chart, around the middle of the month.”
Bitcoin, Ether at “critical inflection points” Zooming out, other findings had little inspiration for Bitcoin optimists on multimonth timeframes and further out. Multiple “short” signals, trading tools showed, mean that BTC/USD is unlikely to make new all-time highs before 2027. “A lot can happen in 6 months that could invalidate it, but at the moment, it’s easy to build a case for price to drop after this current pump loses momentum,” Alan wrote about the six-month chart. The research held similar conclusions about largest altcoin Ether ETH$3,154, describing both coins as being “at critical inflection points.” For a true turnaround, one-week relative strength index (RSI) values above 41/100, along with weekly closes above the 50-week SMA at $101,500, are needed.
📢Long-term BITCOIN holders have executed one of the biggest distributions in the past five years, increasing supply pressure as ETF inflows turn negative and demand weakens.
U.S. lawmakers sent a formal letter to the SEC urging them to implement PRESIDENT TRUMP’S NEW EXECUTIVE ORDER.
The one that opens up the $12.5 TRILLION 401(k) retirement market to crypto and alternative assets.
Read that again:
$12.5 trillion in retirement money… and Washington is now pushing the SEC to make crypto accessible inside 401(k)s.
If the SEC moves forward with this, it would be one of the largest inflows into the crypto space in history.
Not ETFs. Not speculation.
Real retirement money. Slow, steady, relentless capital.
This is the kind of structural shift that can send bitcoin to $250,000+
Most people have no idea how big this is… but when your parents and coworkers suddenly have the option to put 1–5% of their 401(k) into Bitcoin, ETHEREUM, or other digital assets?
That’s massive for crypto and it changes the game.
I told you: institutional adoption wasn’t coming, it’s being forced into existence.
I bought the exact bottom at $16k three years ago and sold the top at $126k and i’ll call my nexy move publicly like i always do.
WHY THE MARKET IS NOT FLYING EVEN AFTER SO MUCH “GOOD NEWS” FROM THE FED?
The crypto market confused many traders because instead of pumping after the positive FOMC update, Bitcoin and altcoins slowed down and dropped again. The truth is simple: the market had already priced in most of the good news before the meeting even started, and when expectations go too high, price reacts in the opposite direction.
First, the rate cut was not a surprise. Traders were expecting it for weeks because the probability was almost certain. Big players entered early and pushed the market up before the anno. Later, when the cut became official, these early buyers booked profits. That selling pressure created the first wave of the decline.
Second, Powell’s cmnts were mixed. He accepted that the economy is softening but also said inflation is still sticky and not where the Fed wants it to be. He also hinted that future cuts might not come quickly.
Third, US stock futures turned red after a major company reported weaker results. This renewed fear that the AI sector may be slowing down. Tech stocks fell fast, and crypto followed because both markets share the same liquidity sources.
When all these factors combined, the market pulled back instead of rallying. Not because the news was bad, but because traders expected something even bigger.
But the larger macro direction remains firmly positive. The Fed has already lowered rates multiple times. They are still adding liquidity into the system. They expect the economy to grow steadily next year.
Crypto is moving slowly because the market needs time to digest the new data. Some traders are waiting for clearer signals, and whales are trying to collect cheaper entries during moments of fear.
The bigger trend has not changed. Liquidity is increasing. Monetary conditions will keep improving. And the crypto market has not yet fully priced in the benefits of this new environment.
Growth is slow today, but the foundation being built is strong. Once the market finishes adjusting, the next upward move can be powerful and sudden.
American banks are now officially allowed to buy and sell Bitcoin for their clients. The bank buys the asset from one counterparty and immediately resells it to another, without keeping it on its balance sheet.
People love to say, “If I put $10,000 into $BNB in 2017, I’d have $60 million now.” But come on, it’s never that simple. Let’s be real. If you bought $10,000 of BNB back in 2017, here’s the rollercoaster you’d actually ride:
You watch your $10k shoot up to $790k. Wild. Then it jumps to $1.15 million. Most people would be itching to cash out, but let’s say you just sit there.
Next, your $1.15 million crashes down to $260k. Ouch. Still, you do nothing. Then, somehow, it rockets up to $2.66 million. Tempting, right? But you’re still holding.
Then—bam—it drops again to $433k. You grit your teeth and keep holding on. Suddenly, it explodes to $45 million. This is life-changing money, but you’re still just watching the screen. Of course, next it collapses to $14.8 million.
Then it climbs to $46.6 million. Still, you hang on. But wait, now it falls again—down to $13.3 million. You’re probably questioning all your life choices at this point. Still, you do nothing. Finally, out of nowhere, it surges to $60 million, and maybe now you finally decide to sell.
So yeah, if you managed to sit through all that chaos, never selling, never panicking, never celebrating too early, then sure—your $10k from 2017 is worth $60 million today. But let’s not pretend that ride was easy.😏