Key Insights:
- Bitcoin breaks rising trend, drops to $85K—market eyes $75K as critical support zone.
- Long-term holders exit positions rapidly, adding pressure to already weak short-term price action.
- Global liquidity rises, but Bitcoin lags—tax-driven selling and low volume stall any upside move.
Bitcoin was trading around $86,183 after falling by 2.76% in the past 24 hours and 4.12% over the last seven days. The decline follows a sharp move down from the 2025 high above $120,000. Price has dropped out of a long-term rising channel, which had supported its climb since early 2023.
The break below this trend structure signals a shift in direction. Bitcoin is no longer in a clear uptrend and is now hovering in a consolidation range. Traders are closely watching the $75,000 level. This zone was a previous resistance and may now act as support. If it holds, current price action could be viewed as a normal pullback. If lost, momentum may reverse quickly.
Long-Term Holders Exit Positions
On-chain data shows that long-term Bitcoin holders have started selling heavily. The 30-day net position change for this group has dropped by nearly 1.2 million BTC, marking one of the sharpest sell-offs in the last five years.
Historically, long-term holders reduce positions during market tops or before periods of uncertainty. The same pattern was seen during the 2017 and 2021 peaks. The current selling trend adds pressure to an already weakened market, with many buyers now on the sidelines. Without new inflows, recovery could be delayed.
Price Lags Behind Liquidity Growth
While Bitcoin has been under pressure, global liquidity has been rising. The Global Liquidity Index shows steady gains, which typically support asset prices. Bitcoin, however, has not moved in step with this trend.
Analysts point to short-term selling and seasonal activity as possible reasons. “Bitcoin has stalled in its downturn but is yet to properly follow this new impulse up in liquidity,” one trader said. Selling linked to the halving cycle and end-of-year tax moves may be weighing on the price.
Focus Shifts to $75K and Early 2026
With Bitcoin holding near $85,000, the $75,000 mark has become a key level. A close below it could shift sentiment quickly. If support holds, it may give the market room to stabilize before the new year.
Attention was turning to Q1 2026. That period may offer Bitcoin a chance to realign with liquidity trends and break away from four-year cycle patterns. Until then, price action is expected to remain muted, with low volume and limited upside movement.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.