Bitcoin (also called BTC) is currently facing a lot of selling pressure, and its price has fallen below important levels. Many experts believe there might be one more big drop before Bitcoin starts to recover. This is happening as traders get ready for new economic reports and deal with fewer trades happening towards the end of the year.
Bitcoin Falls Below Important Trendline
Bitcoin’s price recently dropped below $86,500, which broke it out of an upward channel (a pattern showing higher prices over time) that started in late November. This drop shows weakness in Bitcoin’s recent trend. Colin Talks Crypto, a well-known Bitcoin expert, thinks Bitcoin’s price looks “oversold,” meaning it’s lower than it probably should be. He believes the price is close to hitting a temporary low.
He said, “A capitulation wick down will be the final shakeout.” In simple terms, this means he expects one last big price drop before the market gets rid of weaker traders, paving the way for the price to bounce back. He predicts support (or price stability) will be found between $74,000 and $81,000. After that, he expects Bitcoin’s price to rebound for 4–8 weeks.
Colin also thinks this price movement could happen by the end of this month. Recently, Bitcoin fell to around $85,200, its lowest price since early December. This sudden price drop matches what many specialists expect — that one final drop will push out sellers who are unsure about holding onto their Bitcoin, and the price will recover afterward.
Why Holding $87,000 is a Big Deal
A crypto expert named Ali Martinez shared his thoughts on the current state of Bitcoin. According to him, Bitcoin is at a critical price level right now. His chart shows that Bitcoin is sitting just above a crucial rising support line (a line showing prices that tend to stop falling at certain levels). He said, “Hold $87,000 or risk a move toward $70,000.” What this means is that if Bitcoin’s price doesn’t stay above $87,000, it could drop further, possibly to $80,500 or even as low as $74,600.
On the other hand, Bitcoin also faces resistance (price levels that are hard to rise above) around $92,500 and $95,600. If Bitcoin manages to stay above $87,000 and rises past these resistance levels, it might go up more in the short term. Right now, however, the price is stuck, with pressure both from sellers (pushing prices lower) and buyers (trying to push it higher).
Another expert, CRYPTOWZRD, added his opinion: “$BTC is attempting to break the higher low trendline. This will apply more pressure towards $73,000 if it plays out.” In simple terms, if Bitcoin loses its support from a rising price trendline, its price could fall towards $73,000.
Market Trends and Liquidity Issues
In the last 24 hours, Bitcoin trading activity has totaled about $49.9 billion. Over this time, the price of Bitcoin has dropped by about 4%. In the past seven days, it has fallen a little over 4%. At the same time, the entire cryptocurrency market value went down to $3.02 trillion, the lowest it has been in three weeks.
A crypto analyst known as Daan Crypto Trades mentioned that global liquidity (which measures how easy it is to buy or sell assets like Bitcoin without affecting the price too much) is on the rise. However, Bitcoin’s price has not improved despite this. He explained, “There’s still a lot of 4-year cycle selling paired with tax loss harvesting into the end of the year.”
These terms refer to events where some traders sell Bitcoin as part of a regular market pattern (called the 4-year cycle) or to reduce their taxes for the year. Because of these sellers, Bitcoin’s price has remained low. According to Daan, Bitcoin could perform better starting in early 2026, after the current period of seasonal selling ends and more buyers enter the market.
Meanwhile, the immediate price movement of Bitcoin might depend on important economic updates this week. These updates include new unemployment numbers and PMI data (purchasing managers’ index, which measures the health of businesses). Traders are waiting to see whether these reports will create more selling or help Bitcoin’s price recover instead.
The original article appeared on CryptoPotato.