Bitcoin News Today: Bitcoin Slumps Below Key Averages as Bearish Momentum Intensifies

Bitcoin Faces Renewed Bearish Pressure

Bitcoin faces renewed bearish pressure as it struggles to reclaim the $90,000 level, with sellers tightening their grip across the crypto market. Technical indicators point to a deteriorating trend, with Bitcoin hovering below key moving averages and the RSI signaling downward momentum. The breakdown of a descending trendline has raised concerns about further losses, with the price now consolidating near $86,000.

Institutional interest has shown mild signs of improvement, with US-listed spot Bitcoin ETFs recording inflows in recent weeks. However, these inflows remain smaller than those seen in mid-September, and experts caution that stronger participation is needed for a meaningful recovery. The recent rejection of key resistance levels has also heightened the risk of a deeper correction.

The bearish technical outlook is compounded by macroeconomic concerns, particularly the upcoming Bank of Japan rate decision. Historical data shows a pattern of sharp Bitcoin corrections following BoJ rate hikes, and traders are bracing for a potential 30% pullback. If Bitcoin follows past trends, a drop toward $63,000 could be on the horizon.

Why the Standoff Happened

Bitcoin's recent struggles are rooted in both technical and macroeconomic pressures. The price has failed to break above the 61.8% Fibonacci retracement level at $94,253, a critical resistance zone shaped by the April 2025 low and October's all-time high. The breakdown of this level has reinforced a bearish bias, with the RSI on the daily chart falling to 44 and the MACD lines converging toward a potential bearish crossover.

At the same time, Bitcoin has moved below the 50-day, 100-day, and 200-day exponential moving averages, which have flipped from dynamic support to resistance. This shift has created a structural bearish scenario, with sellers dominating the price action as Bitcoin trades well beneath its key averages. The absence of follow-through buying after brief tests of the 200-day moving average further signals weak momentum.

What Analysts Are Watching

Market participants are closely monitoring key support levels, with $85,500 and $85,000 standing as immediate and major thresholds, respectively. A breakdown below these levels could accelerate the price toward $80,000, where historical liquidity may provide a temporary floor. On the flip side, a decisive recovery above $90,000 could reignite bullish momentum.

Technical analysts and veteran traders are also watching for confirmation signals from the MACD and RSI. A cross below the signal line on the MACD could validate a bearish move, while the RSI staying below 50 suggests continued selling pressure. In contrast, a sustained breakout above the $90,000 level would likely require strong participation from buyers and a reversal in sentiment.

Risks to the Outlook

Bitcoin's path forward remains uncertain, with several risks on both the bullish and bearish sides. On the downside, a failure to hold above $85,000 could lead to a sharper correction toward $60,000 or even $25,000, as predicted by some analysts. The exponential decay of Bitcoin's bull cycles has raised concerns that the current correction could be the start of a broader bear market.

On the upside, a successful rebound above $90,000 could stabilize the price and attract renewed institutional interest. ETF inflows have shown slight improvement, and if this trend continues, it could provide a floor for the price. However, bulls must first reclaim key moving averages and break through the $94,700 resistance level to shift the medium-term bias in their favor. For now, Bitcoin remains at a pivotal inflection point. The coming days and weeks will be critical in determining whether buyers can regain control or whether the bearish momentum will carry the price much lower. Investors are advised to stay cautious and monitor both technical levels and broader macroeconomic developments for signs of a turning point.