Bitcoin is breaking a key support level, and analysts are eyeing the lower $74K-$81K range before a 4-8 week rally. The market is waiting for the impact of the macro data.
Bitcoin (BTC) is facing pressure after falling below important support levels. Many market watchers believe that an eventual decline may come before a short-term recovery. This is happening as traders prepare for upcoming economic reports and decreased liquidity at the end of the year.
BTC is slipping below the major trend line
Bitcoin fell below $86,500, breaking out of the upward channel that had been in place since late November. This move indicates weakness in the current trend. Colin Tookes Crypto, renowned industry analyst, male The cryptocurrency appears to be oversold and close to the bottom in the short term.
books: “The fuse of surrender will be the final shock“, indicating that the next sharp decline may represent the bottom. He expects the range between $74,000 and $81,000 to provide support, adding,
“I fully expect a nice bounce to last 4-8 weeks after the bottom is found.”
He also stated that this could happen before the end of the month. Bitcoin recently touched $85,200, the lowest point since December 2, when a significant leverage influx occurred. This selling pattern fits with the idea that the recent downward wave may shake out holders of weaker stocks before a rebound.
Keeping $87,000 is crucial
Analyst Ali Martinez subscriber The view is that Bitcoin has now reached a major decision point. Its chart shows BTC trading just above a rising support line. “Hold $87,000 or risk a move toward $70,000He warned that a close below this level could lead to a bigger decline towards $80,500 or even $74,600.
At the same time, resistance levels have been identified around $92,500 and $95,600. If Bitcoin remains above $87,000 and rises, a short-term uptrend may still be possible. But right now, the price is stuck between pressures from both sides.
Another analyst, CRYPTOWZRD, He added:
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“$BTC is trying to break the lower-upper trend line. This will put more pressure towards $73,000 if that happens.”
Market sentiment and liquidity trends
Bitcoin’s 24-hour trading volume is about $49.9 billion. The price is down nearly 4% in the past day and more than 4% over the past seven days. The total market capitalization of cryptocurrencies also fell to $3.02 trillion, the lowest level in three weeks.
Dan crypto trades He pointed out Global liquidity is rising, but Bitcoin has not responded.
“There is still a lot of 4-year selling combined with tax loss harvesting through the end of the year,” he said.
He expects Bitcoin will have a better chance of growth in early 2026, once volume returns and the seasonal selling ends.
Meanwhile, it may be the next step Paid Through economic figures scheduled for release this week, including unemployment figures and purchasing managers index data. Traders are watching to see if this will bring more selling or help prices recover.
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