Bitcoin (BTC) is under pressure as it has dipped below significant support lines. Analysts are projecting one last drop might take place before a temporary recovery. This situation unfolds as traders anticipate economic data release amidst diminishing liquidity at year-end.

Bitcoin Drops Below Crucial Trendline

The price of Bitcoin has fallen beneath $86,500, exiting a bullish channel established since late November. This recent movement suggests a lack of strength in the current trend. Popular analyst Colin Talks Crypto detailed that the cryptocurrency appears oversold and is near a potential short-term low. He remarked,

“A capitulation wick down will be the final shakeout.”

This indicates that the next sharp decline could signify market bottoming out. He predicts support levels between $74,000 and $81,000, adding,

“I’m fully expecting a nice juicy bounce that lasts for 4-8 weeks after the bottom is found.”

This action may occur before the month concludes. Bitcoin recently reached $85,200, marking the lowest point since December 2, post a significant leverage flush.

Maintaining $87K is Essential

Analyst Ali Martinez expressed that Bitcoin stands at a crucial decision juncture. Based on his chart, BTC is just above a rising support line. “Hold $87,000 or risk a shift toward $70,000,” he cautioned. A fall below this boundary might instigate a larger pullback towards $80,500, or possibly $74,600.

Simultaneously, traders have identified resistance levels around $92,500 and $95,600. Should Bitcoin hold above $87,000 and ascend, short-term gains could still be achievable. However, currently, the price is caught under pressure from both directions.

Adding to the analysis, another expert, CRYPTOWZRD, indicated:

“BTC is attempting to break the higher low trendline. This will apply more pressure towards $73,000 if it plays out.”

Market Sentiment and Liquidity Trends

The trading volume for Bitcoin over the last 24 hours hovers around $49.9 billion. The price has dipped nearly 4% within the day and has seen an over 4% drop within the week. Additionally, the overall cryptocurrency market value has fallen to $3.02 trillion, reflecting the lowest mark in three weeks.

Analyst Daan Crypto Trades noted that while global liquidity is on the rise, Bitcoin’s response has been minimal.

“There’s still a lot of four-year cycle selling paired with tax loss harvesting into the end of the year.”

He foresees Bitcoin having stronger growth prospects in early 2026, as market volumes pick up and seasonal sell-off conclude. The forthcoming movements might be steered by the economic data set to be released this week, encompassing unemployment statistics and PMI data. Traders are currently monitoring the potential effects on market dynamics.