The price of Bitcoin has encountered difficulties since it fell from the significant threshold of $90,000. There is a risk that it could experience a bearish trend if it drops below $87,000 as market sentiments fluctuate. If sellers gain control, BTC might decline to around $85,000 or even lower.
As the festive season approaches, Bitcoin (BTC) finds itself trading within a tight range near $87,000 amidst negative market conditions—this is different from previous cycles.
On Wednesday, BTC reached lows of $86,411 due to diminishing holiday liquidity and decreasing momentum; bulls have struggled to maintain levels above $88,000.
The inability of Bitcoin to reclaim the crucial level of $90,000 coincides with sideways trading patterns amid general market caution. Institutional demand seems to have cooled off after experiencing strong inflows earlier in 2025.
Bitcoin Faces Challenges Amid ETF Withdrawals
In recent weeks, there has been a consistent trend of withdrawals from US spot Bitcoin exchange-traded funds (ETFs), reflecting bearish sentiment towards BTC and its ETFs among larger investors.
Data from SoSoValue indicates that on Tuesday, December 23rd alone saw net outflows totaling approximately $189 million for spot Bitcoin ETFs.
This marked four consecutive days of negative flows—a pattern that aligns with broader trends typically observed during late 2025 when year-end de-risking and portfolio adjustments are anticipated.
Market analysts suggest this situation has led to decreased participation from institutional investors.
The on-chain analytics firm Glassnode recently highlighted this trend in their commentary shared on X (formerly Twitter).
Analysts pointed out that since early November the 30-day simple moving average (SMA) for net flows into both Bitcoin and Ethereum ETFs has remained negative throughout this period.
While total inflows for the year still exceed an impressive sum exceeding $57 billion; these recent outflows indicate a slowdown in institutional interest in these assets
“This ongoing trend suggests a phase characterized by reduced engagement and partial withdrawal by institutional allocators which reinforces broader liquidity tightening across the cryptocurrency sector,” stated Glassnode’s platform analysis.
Bullish momentum wanes as substantial withdrawals coincide with Bitcoin’s failure to sustain gains above critical psychological barriers at both $100K and then $90K.
Current short-term pressures see bulls grappling with downside risks hovering around $87K.
Since early November,the 30D-SMAof net flows into both
Bitcoin
and Ethereum ETFs has turned negative and remained so.
This persistence suggests a phase
of muted participation
and partial disengagement from institutional allocators,reinforcing a broader liquidity contraction… pic.twitter.com/1aglRpQqD9
— glassnode (@glassnode) December 23,2025.</The Future Outlook for Bitcoin Prices: Are Further Dips Possible?
A technical analysis reveals significant hurdles faced by bitcoin since its retreat away from the pivotal mark at $90K.
Eager buyers attempting rebounds have met resistance as selling pressure pushed prices below
.
<$85k earlier this month.PThis rejection following attempts above
.
$4.5k.P
Bitcoin price chart provided by TradingView.Certain key indicators suggest dwindling upward momentum exists within current trends.P
.The Relative Strength Index(RSI) dipped beneath neutral territory(50), indicating weakened buying strength.P
.Additionally,the Moving Average Convergence Divergence(MACD) exhibits converging lines suggesting fading bullish energy.If new demand fails materialize,BTC may seek support levels closer towards
.
<$85k or potentially lower ahead . P
