Bitcoin started the new trading week under pressure, with prices falling sharply and breaking lower after weeks of slow movement. BTC dropped about 2.7% in the last 24 hours to trade near $85,700, wiping out momentum built earlier in the month. Its market value slipped to around $1.72 trillion, while trading volume dropped more than 35%.
The broader crypto market also turned red, extending the choppy and weak price action seen throughout December.
Bitcoin had been moving sideways for weeks, and many traders were waiting for a clear breakout. Instead, the market moved lower, catching late buyers off guard.
Analysts say that slow and quiet markets often end with sharp moves. In this case, the breakout has started to the downside.
Bitcoin Rejected at Key Resistance
Bitcoin failed to break above an important resistance level near $92,500 in late November. After repeated attempts, prices stalled and sellers gradually took control.
This rejection was a warning sign. When Bitcoin cannot push past major resistance, profit-taking usually increases, leading to short-term declines.
Support Near $86,000 Now Under Pressure
Bitcoin is now hovering close to an important support zone around $86,000. While this level has held so far, analysts warn that continued selling could push prices lower.
If BTC decisively breaks below this area, the next downside targets could fall between $83,000 and $80,500.
Market Stuck Between Key Levels
On shorter timeframes, Bitcoin remains trapped between falling resistance and weakening support. This tightening range often leads to high volatility once price escapes the zone.
A recovery above $90,650 could improve short-term sentiment, but until then, analysts say the market remains vulnerable to further downside.
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