Bitcoin‘s Tipping Point: Can Bulls Survive as Price Threatens to Dive Below $85K?
While Bitcoin has enjoyed a meteoric rise over the past year, storm clouds are gathering on the horizon. The cryptocurrency king has stumbled below the essential $90,000 support level, hitting a concerning low of $86,900 on February 25, 2025. Historical data suggests a bear market phase typically sees investors lose up to 90% of their value. Not great timing. The digital asset is now trading around $88,000, representing a 10% drop from its recent consolidation range.
Technical indicators aren’t painting a pretty picture either. Bitcoin is trading below both its annual VWAP and 50-day moving average, confirming a bearish short-term trend. Oscillators have reached new lows. The medium-term outlook has shifted to neutral, though the long-term trend remains bullish. Small comfort for those watching their portfolios bleed.
The $86,800 level represents essential support that absolutely must hold. If it doesn’t? Look out below. The next major support sits at $85,000, with additional floors at $81,700 and $78,500 if selling pressure continues. That would mean a painful 15% drop to $76,000 from current levels. Ouch.
For bulls to regain control, Bitcoin needs to reclaim $90,700 as a first step, with $99,400 and $106,000 representing significant hurdles beyond that. The all-time high of $109,354 remains a distant 22% away. Dream on.
Historical patterns offer some hope. Previous cycles saw 24-26 month recovery periods, with typical one-year catch-up phases post-halving. The Fibonacci retracement levels suggest Bitcoin could still reach ambitious price targets between $173,088 and $458,319 despite current weakness. If this pattern holds, October 2025 could mark the bull market peak. We’ll see about that.
External factors present a mixed bag. US spot Bitcoin ETFs have attracted an impressive $35.41 billion in inflows, with BlackRock’s IBIT ETF managing $41 billion in just 11 months. The derivatives market shows concerning signs with nearly $331 million liquidated in long positions over just two days. Corporate adoption is increasing and regulatory clarity improving. But geopolitical risks loom, and retail adoption has slowed.
The question remains: Will Bitcoin hold its essential support, or are we witnessing the beginning of a deeper correction? The market seems uncertain. Buyers are struggling. The next few weeks will be telling.
