Bitcoin News Today: Bitcoin Faces $86.8K Turning Point as Bulls and Bears Clash in Intense Price Battle

Bitcoin Faces Critical Test Amid Ongoing Downtrend

Bitcoin’s recent price movements have attracted renewed attention, as the cryptocurrency continues to trade within a downward consolidation pattern. Market participants are closely analyzing whether the bounce from the $80,000 level marks a lasting bottom or merely a short-lived recovery. After falling more than 30% from its October high of $126,200, Bitcoin is now hovering around $86,800—a price point that has become a battleground for both optimistic and pessimistic traders. Technical analysis and blockchain data indicate that Bitcoin is at a pivotal moment, with significant support and resistance levels likely to determine its short-term direction.

Bearish sentiment has been amplified by the emergence of a potential lower high, a chart pattern that often signals continued weakness. Bitcoin’s failure to reclaim the $90,000 resistance—despite a brief rally during Asian trading hours—has fueled concerns about diminishing bullish momentum. This resistance level, which has historically served as both a psychological and technical barrier, remains unbroken. Momentum indicators such as the RSI and MACD are also showing limited strength behind the latest rally. If Bitcoin cannot surpass this hurdle, it may revisit the $80,000–$78,500 support range, and a sharper decline toward $73,500 could follow if selling intensifies.

On-chain metrics further reinforce the bearish outlook. There has been a notable increase in selling from long-term holders, leading to a significant reduction in total supply, which now stands at 13.6 million BTC. This uptick in selling activity has coincided with Bitcoin’s price drop from its October peak, suggesting the market may be entering a weaker phase unless new buyers step in to absorb the excess supply. The bearish case is also supported by Bitcoin trading below its 50-day, 100-day, and 200-day moving averages, all of which are trending downward—a configuration often linked to prolonged negative momentum.

Potential Signs of Stabilization

Despite the prevailing negative outlook, there are some positive developments for bullish investors. Spot Bitcoin ETFs have recently attracted $238 million in net inflows after a period of consistent outflows, which could help stabilize the market. If this trend continues, Bitcoin may attempt another move toward the $90,000 resistance, a level that has historically opened the door to further gains. However, the path forward remains challenging. A hidden bearish divergence in the RSI—where the price forms a lower high while the RSI makes a higher high—suggests that the current rebound may lack the strength needed for a sustained reversal. Additionally, the 100-day exponential moving average is approaching a bearish crossover with the 200-day EMA, indicating further weakness in the trend structure.

Key Levels to Watch

Traders are now focused on whether Bitcoin can maintain support above $85,000. A drop below this level could trigger increased selling and expose the $80,000 area, which has already been tested twice in recent weeks. On the other hand, a strong close above $87,500—within a significant supply zone—could reignite bullish enthusiasm and pave the way for a rally toward $98,000–$100,600. Until a clear breakout occurs, the market is likely to remain volatile and uncertain, as both institutional and retail investors await clearer signals on the next phase of the cycle.