Bitcoin News Today: Bitcoin's $86.8K Crossroads: Bulls Battle Bears in High-Stakes Price Showdown

Bitcoin's price action has drawn renewed scrutiny as the cryptocurrency remains mired in a bearish consolidation phase, with traders and analysts dissecting whether the recent rebound from $80,000 represents a meaningful bottom or a temporary reprieve. The asset, which has lost over 30% of its value since peaking at $126,200 in October, now trades near $86,800, a level that has become a focal point for both bulls and bears. Technical indicators and on-chain data suggest that the market is at a critical juncture, with key resistance and support levels poised to dictate the near-term trajectory of BTC.

The bearish sentiment is reinforced by the formation of a potential lower high pattern, a technical structure that typically signals continued downside momentum. Bitcoin's inability to reclaim the $90,000 resistance zone-despite a brief rebound in early Asian trading hours-has raised concerns about waning bullish conviction. This resistance, which has historically acted as a psychological and technical ceiling, remains unbroken, with momentum indicators like RSI and MACD showing weak follow-through on the recent rally. A failure to pierce this level could trigger a retest of the $80,000–$78,500 support cluster, with further declines to $73,500 becoming increasingly plausible if the breakdown accelerates.

On-chain data compounds the bearish narrative, with long-term holder (LTH) selling activity intensifying. The latest metrics reveal a sharp reduction in supply, driven by aggressive dumping from LTH wallets, which has pushed the total supply to 13.6 million BTC. This sell-off coincides with Bitcoin's price decline from the October peak, suggesting that the cycle may be entering a structurally weaker phase unless fresh demand emerges to absorb the outflow. The bearish case is further bolstered by the positioning of Bitcoin below critical moving averages-the 50-day, 100-day, and 200-day-which are now trending downward, a configuration often associated with sustained bearish momentum.

While the short-term outlook leans bearish, there are glimmers of hope for bulls. Spot Bitcoin ETFs have seen a modest $238 million in inflows after a month of outflows, potentially providing a stabilizing force for the market. If this trend continues, it could help Bitcoin retest the $90,000 resistance, which has historically acted as a gateway to higher levels. However, the path to recovery is fraught with challenges. A hidden bearish divergence in the RSI -a technical signal where price makes a lower high while the RSI records a higher high-suggests that the current rebound may lack the momentum to sustain a reversal. Additionally, the 100-day exponential moving average (EMA) nearing a bearish crossover with the 200-day EMA signals weakening trend structure, further complicating the case for a sustained rally.

The immediate focus for traders is whether Bitcoin can hold the $85,000 support level. A breakdown below this threshold could accelerate selling pressure and expose the $80,000 zone, which has already been tested twice in recent weeks. Conversely, a decisive close above $87,500-part of a heavy supply zone-could rekindle bullish sentiment and set the stage for a move toward $98,000–$100,600. Until then, the market remains in a precarious state, with volatility and uncertainty likely to persist as institutional and retail participants await clarity on the direction of the cycle.