As Bitcoin plummets to its 2025 low, the cryptocurrency market finds itself at a critical juncture. The leading digital asset crashed below $90,000 this week, tumbling nearly 10% to reach a support zone around $89,000. Currently hovering at $88,000 after touching a low of $86,900, Bitcoin has broken below both its first monthly pivot support and the lower range established in late 2024. Not great timing for hodlers.
Technical indicators paint a grim picture. A double top pattern formed between December and January, while bearish divergence appeared on the RSI. The indicator now sits in oversold territory—a potential lifeline for bulls hoping for a bounce. But momentum is fading fast. The medium-term trend has shifted to neutral and could confirm a reversal if support levels crumble.
Technical momentum shows dangerous weakness as Bitcoin forms bearish patterns, with oversold conditions offering bulls their last chance for recovery.
The $86,800 level represents critical support. If that breaks? Look out below. Next stop: $85,000. Should sellers push harder, $81,700 and $78,500 come into focus, with the $76,000 zone representing a stomach-churning 15% drop from current levels. Traders are currently experiencing visual indicators while watching the market’s ongoing verification process. The halving schedule remains firmly embedded in Bitcoin’s code, making it impossible for any central authority to intervene in the current market dynamics. The $74,000 area stands as the final bulwark—crucial support from 2024’s peaks. The recent liquidation of nearly $331 million in long positions over just two days demonstrates the severity of selling pressure in the market.
Various factors fuel the downturn. Trump’s tariff threats against Canada and Mexico have markets on edge. The Fed remains dovish. Argentina’s President saw his memecoin implode. Oh, and don’t forget the $1.4 billion Bybit hack. Talk about a perfect storm.
The optimism that characterized early 2025 is evaporating. Bulls are struggling to regain control as uncertainty rises. Still, the long-term trend remains bullish despite the current weakness.
Historically, similar price action occurred during the 2013 and 2017 acceleration phases. Bernstein maintains its $200,000 target for the next 12 months, while other analysts project $110,000 by March’s end.
To stage a recovery, Bitcoin needs to reclaim $90,700, potentially opening the path to $99,400 or even $106,000. The all-time high of $109,354 sits 22% above current levels. Seems distant now, doesn’t it?
