Bitcoin News Today: Bitcoin Tethered Near $85K Support as Traders Await Breakout Signal

Bitcoin remains in a precarious equilibrium, with price action hovering just above the $85,000 support level. Analysts warn that a break below this threshold could trigger a deeper decline toward November lows. Conversely, a successful retest of the $88,000 resistance could spark a bullish breakout.

Market participants are closely watching technical indicators and macroeconomic factors as Bitcoin trades near $86,750. The recent drop of 0.77% in the last 24 hours has highlighted the fragility of the current balance. Daily trading volume has exceeded $46 billion, underscoring the heightened attention from traders.

Short-term resistance around $88,000 remains a critical barrier. Analysts such as Michaël van de Poppe emphasize that a clear breakout above this level is essential for gaining upward momentum. Failure to do so may lead to renewed liquidity hunts at lower support levels, increasing the likelihood of further downward pressure.

Technical indicators are showing mixed signals. While Bitcoin holds above key support zones, the RSI and MACD suggest bearish divergence, indicating a potential correction is on the horizon. TradingView analyst Maayan Tiran notes that the market is forming the peak of a corrective Wave (B), with potential tops between $109,000 and $150,000 before a possible Wave (C) decline to $45,000–$67,000.

The current price action reflects weakening momentum despite recent higher highs. Investors are advised to monitor these signals closely for any signs of a pullback. The Elliott Wave count and Fibonacci extension levels further reinforce this cautionary outlook.

Market volatility and macroeconomic factors

Bitcoin's recent performance is also influenced by broader macroeconomic factors. Analysts point to the impact of global financial developments, including adjustments by the Bank of Japan. Institutional activity remains relatively steady, but retail-driven selling pressure has intensified, especially as year-end de-risking and tax-loss harvesting drive short-term volatility.

The market is also navigating seasonal liquidity challenges, particularly around the Christmas and Boxing Day options expiry. This period has historically led to mean-reverting price action as liquidity returns in January. QCP Capital notes that holiday-driven moves often fade, much like low-liquidity weekend spikes.

What This Means for Investors

For investors, the next few weeks will be crucial in determining Bitcoin's trajectory. A sustained move above $88,000 could set the stage for a rally toward $94,000, while a breakdown below $85,000 may lead to further downward pressure. Analysts urge investors to remain informed and cautious amid the elevated volatility.

Given the complex interplay of technical indicators, market sentiment, and macroeconomic factors, staying updated on Bitcoin's price developments is essential. The current fragile equilibrium requires close monitoring, particularly as the market approaches key technical levels and options expiries.