Bitcoin began the new trading week under significant pressure, experiencing a sharp decline after several weeks of relatively stagnant price movement. Over the past 24 hours, BTC has fallen approximately 2.7%, settling near $85,700 and erasing much of the gains accumulated earlier this month. Its market capitalization has decreased to roughly $1.72 trillion, accompanied by a more than 35% drop in trading volume.
The wider cryptocurrency market also turned bearish, continuing the volatile and weak trend that has characterized December’s trading sessions.
After weeks of sideways movement with traders anticipating a decisive breakout, Bitcoin instead moved downward unexpectedly, catching many late buyers off guard.
Market experts note that periods of low activity and quiet trading often precede sudden sharp moves; in this instance, the breakout is occurring on the downside.
Bitcoin Faces Rejection at Crucial Resistance Level
In late November, Bitcoin was unable to surpass a critical resistance point near $92,500 despite multiple attempts. This failure caused momentum to stall as sellers gradually gained dominance over buyers.
This rejection served as an early warning signal: when Bitcoin struggles to break through key resistance levels, profit-taking tends to increase which often results in short-term price declines.
Support Around $86,000 Comes Under Threat
The cryptocurrency is currently hovering close to an essential support zone around $86,000. Although this level has held up so far against selling pressure analysts caution that continued downward momentum could push prices below it.
If Bitcoin decisively falls beneath this support area, potential targets on the downside range between approximately $83,000 and $80,500.
The Market Remains Confined Between Critical Price Boundaries
On shorter timeframes analysis shows Bitcoin trapped within narrowing boundaries formed by descending resistance and weakening support levels. Such compression typically leads to heightened volatility once price breaks out from these confines.
A rebound above roughly $90,&650 may help restore positive sentiment temporarily; however until then experts warn that further declines remain possible given current market conditions.