Bitcoin failed to build enough momentum to break above the $90,000 and $90,500 resistance levels, triggering a fresh decline that pushed the price below the $88,500 support zone.
Selling pressure intensified briefly, with BTC dipping under $87,000. The crypto asset has recorded a slight retracement, as it trades at $87,091, at the time of this report. The price is currently holding below the 23.6% Fibonacci retracement level of the downward move from the $93,560 swing high to the $85,151 low.
At the time of observation, Bitcoin remains below $88,000 and under the 100-hourly simple moving average, signaling continued near-term weakness.
Rick Maeda, research associate at Presto Research, explained that there was no clear crypto-specific catalyst behind the sell-off. Instead, the move largely coincided with the opening of U.S. equity markets, where stocks opened lower and dragged risk assets down with them. Maeda added that thinning liquidity toward year-end tends to exaggerate price movements, particularly during U.S. trading hours.
Despite the slight pullback, bullish participants remain active. If buyers regain control, Bitcoin could attempt another upward move. Immediate resistance is seen near $87,150, with the first key resistance level around $87,500.
Vincent Liu, Chief Investment Officer at Kronos Research, noted that a rapid return of “risk-off” sentiment, combined with thin liquidity, turned modest dips into a broader decline. According to Liu, traders rotated into safer assets as macroeconomic concerns resurfaced. He added that the Federal Reserve’s recent rate cut had limited impact, as leverage unwound and year-end liquidity constraints amplified selling pressure.
Last week, the U.S. Federal Reserve announced a 25 basis point interest rate cut, marking its third reduction this year. The decision prompted analysts to reassess its broader implications for risk assets, including cryptocurrencies.
On-chain dynamics also point to distribution pressure. Whales holding more than 10,000 BTC have emerged as major drivers of selling over the past two months, with buying activity from smaller large holders proving insufficient to offset the supply.
Charles Edwards, founder of Capriole Investments, noted that while institutional buying on Coinbase has reached historically high levels, it is being absorbed by long-term holders and early investors selling at rates not seen in years. He suggested that Bitcoin’s price appreciation could remain capped until this heavy distribution eases.
Meanwhile, longtime Bitcoin critic and gold advocate Peter Schiff criticized financial media coverage, arguing that outlets have focused heavily on Bitcoin despite its decline to around $86,000, while overlooking strong gains in precious metals.
Schiff pointed out that gold rose more than $40 to over $4,300 per ounce, while silver climbed nearly $2 to around $63.90 per ounce, yet received little attention. He attributed this imbalance to limited understanding of precious metals and the influence of cryptocurrency advertisers.
In a follow-up comment, Schiff reiterated his bullish stance on gold and silver, citing continued after-hours gains, while urging investors to sell Bitcoin in favor of precious metals.
From a technical perspective, with BTC currently trading above the $87,000 zone, immediate support lies near $85,500, with a key support level at $85,000. A break below this area could open the door to $83,500 and potentially $82,500. The major support level remains at $80,000, and a decisive move below it could accelerate losses in the near term.
