Bitcoin Price Approaches Key Support as Four-Year Cycle Nears Completion

According to ARK Invest CEO Cathie Wood, bitcoin price is moving through what could be a historic inflection point. Speaking in a recent market analysis, Wood contends that the current correction phase may represent the most moderate drawdown in bitcoin’s four-year cycle history. This assessment challenges widespread bearish sentiment about potential extended weakness in the digital asset market.

ARK’s Cathie Wood: This Could Be Bitcoin’s Shallowest Down Cycle Yet

Wood emphasized that the current market environment reflects a maturing asset class rather than structural deterioration. “We’re pretty well through the down cycle here,” she stated, noting that the preceding bull market was restrained by historical standards. This moderate upside, according to Wood’s analysis, has directly constrained the severity of the pullback phase.

The ARK Invest team expects the current bitcoin price correction to represent “the shallowest four-year cycle decline in bitcoin’s short history.” Rather than facing prolonged weakness, Wood argues the market is positioned for renewed strength once the correction concludes. Her framework views this cycle not as a signal of asset weakness, but as evidence of market maturation—where volatility is gradually normalizing relative to earlier phases.

Testing Support: Bitcoin Price Finds Stability Around $88,000-$90,000

Real-time bitcoin price action reflects this analytical backdrop. Trading near $88,230 as of late January 2026, with a 24-hour gain of approximately 0.96%, the asset continues to consolidate within a critical support band. Wood noted that bitcoin may test price levels in the $80,000 to $90,000 range, but she expects these psychological price points to hold firm. “We may test in this range on bitcoin, but we do think that the test will be successful,” she explained.

This support zone has emerged as a key battleground where bull and bear positioning continues to interact. Rather than viewing tests of these levels as capitulation signals, Wood frames them as healthy market behavior—the natural process of validation that precedes the next advancing phase.

Geopolitical Winds and Market Momentum: What’s Driving Bitcoin Right Now

Near-term price dynamics have been shaped significantly by geopolitical developments and policy announcements. Bitcoin price swung dramatically during intraday trading, moving from the $88,000 level to $90,500 before retracing into the upper $87,000s. The recovery toward $90,000 coincided with U.S. President Donald Trump’s announcement to delay planned tariffs on trading partners.

Following what Trump described as “very productive” negotiations with NATO Secretary General Mark Rutte, the administration postponed tariffs scheduled for February 1. This decision eased broader trade uncertainty and supported risk assets across the market, providing tailwinds for bitcoin price recovery. The interconnection between macroeconomic policy shifts and digital asset valuations continues to demonstrate bitcoin’s increasingly mature role within diversified portfolios.

The Bigger Picture: Why Bitcoin Price Matters Beyond the Cycle

Looking beyond immediate price cycles, Wood frames bitcoin within a broader strategic thesis she describes as “three revolutions in one”: a new globally competitive, rules-based monetary system; a breakthrough technology platform; and the cornerstone of an emerging asset class. This long-term perspective positions current bitcoin price consolidation as temporary positioning rather than fundamental challenge.

With ARK expecting the correction phase to exhaust itself, market participants are increasingly focused on the timing and strength of the next advance. Wood’s conviction suggests that bitcoin price, having tested key psychological support zones, may be ready to establish the foundation for renewed upside momentum once this cycle fully completes.