Bitcoin News Today: Bitcoin Struggles Near $90K as Bearish Momentum and Macro Risks Weigh on Bulls

Bitcoin prices hovered just below $90,000 on Monday, struggling to hold above a key descending trendline drawn from multiple October highs. Despite some initial optimism following a Fed rate cut, the cryptocurrency faced renewed bearish pressure. Technical indicators such as the Relative Strength Index and MACD showed weakening bullish momentum, signaling caution among traders. Institutional interest in Bitcoin appeared to inch higher, with modest inflows into US-listed spot ETFs, but the volume remained far below levels seen in mid-September according to analysis.

The drop below $90,000 has reignited concerns among traders, with veteran trader Peter Brandt warning of a potential decline toward $25,240. Brandt's analysis highlights the historical pattern of Bitcoin bull cycles, where a break below the parabolic support line often leads to at least an 80% correction. This warning adds to the bearish sentiment already weighing on the market according to market analysis. Meanwhile, macroeconomic signals, such as the Bank of Japan's anticipated rate hike, also pose a significant risk, as Bitcoin has historically seen sharp declines following such policy tightening according to market data.

Bitcoin's recent price movement reflects a mix of short-term optimism and longer-term uncertainty. While retail interest in Bitcoin derivatives has increased, as evidenced by a rise in futures open interest, Ethereum and XRP continue to struggle with retail demand. The broader market's ability to stabilize and regain bullish traction depends on key technical levels, particularly the $94,253 Fibonacci retracement according to technical analysis. A clean breakout above this level could potentially push Bitcoin toward the psychological mark .

Why the Standoff Happened

The standoff between bullish and bearish forces has intensified as Bitcoin faces critical resistance near $94,253. This level coincides with a descending trendline drawn from early October highs, making it a key psychological barrier for the cryptocurrency according to technical analysis. Traders are watching closely as Bitcoin fluctuates around $89,000, with the 78.6% Fibonacci retracement at $85,569 serving as the next potential support level if the price continues its downward correction. The Relative Strength Index is currently at 44, below the neutral level of 50, reinforcing bearish momentum. Additionally, the MACD lines are converging, and a bearish crossover could further support the downward trend according to technical indicators.

The recent bearish candle formed after Bitcoin failed to close above $94,253. This pattern, characterized by a long upper wick and a small red body, indicates rejection at the key resistance level. Such a formation signals fading bullish momentum and could trigger further selling pressure from investors who had positioned themselves for a rally according to market analysis. Analysts suggest that a breakdown from the rising counter-trend channel could lead to a retest of the recent $80,000 lows according to technical indicators. The situation is further complicated by the performance of the Nasdaq, which also stalled in its rebound, hinting at broader market volatility.

Risks to the Outlook

Bitcoin's technical outlook is complicated by several macroeconomic and market-specific risks. The Bank of Japan's upcoming rate decision adds another layer of uncertainty, as Bitcoin has historically seen sharp declines of 27–30% following previous BoJ rate hikes according to market data. If history repeats itself, the price could experience a roughly 30% correction, potentially pulling it down to $63,000 according to technical analysis. This potential correction aligns with Peter Brandt's warning, which emphasizes the exponential decay seen in previous bull cycles.

Institutional demand for Bitcoin has shown mild improvement, as US-listed spot ETFs recorded a weekly inflow of $286.60 million. However, these inflows remain relatively modest compared to those observed in mid-September. For Bitcoin to sustain its recovery, these flows need to intensify significantly. The broader crypto market is also watching for signs of increased adoption and accumulation by long-term holders. On-chain data shows that short-term holders are experiencing realized losses, suggesting that late sellers may be capitulating according to on-chain analysis. Meanwhile, the global stablecoin market is expanding, with corporate adoption and regulatory clarity driving growth according to market reports. This shift could impact Bitcoin's role in corporate payroll and broader use cases.

What This Means for Investors

For investors, the immediate outlook for Bitcoin remains cautiously bearish. Traders should keep a close eye on key technical levels such as $94,253 and $88,000, which will determine whether the price can stabilize or face further downward pressure. A breakout above $94,253 would be a positive sign for bulls, potentially leading to a push toward $100,000. However, a breakdown below $88,000 could trigger a deeper correction toward $80,000 according to market analysis.

Short-term holders in 2025 have shown resilience, logging profits for 66% of the year despite a negative YTD return for Bitcoin. This trend highlights the importance of frequent price rebounds, even in a broader negative trend. The recent compression of unrealized losses from -28% to -12% suggests that forced selling is easing, which could lead to a temporary stabilization in the market according to market data. Institutional investors are advised to monitor these developments closely, as the next phase of Bitcoin's price action will depend heavily on macroeconomic signals, ETF inflows, and liquidity expansion in 2026 according to market analysis. Given the current market dynamics, a "Hold" stance is justified, with tactical accumulation favored below $88,000. Investors are advised to maintain disciplined risk management strategies, particularly as macroeconomic uncertainty continues to weigh on the market. The next few weeks will be critical in determining whether Bitcoin can overcome its short-term headwinds and resume its longer-term bullish trend.