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Bitcoin is on track for its fourth straight yearly decline in 2025. This may be the first year a drop comes without a major industry scandal or market collapse. The cryptocurrency has fallen over 6% this month as trading interest cools. Additionally, the year‑to‑date price stands well below its recent peak, making investors more cautious.
Currently, Bitcoin is trading close to $86,000, indicating a slump of nearly 30% from its high of $126,000 in October. The price is below various technical support levels, which indicate that the cryptocurrency has weak momentum.
Spot Bitcoin exchange-traded funds have witnessed substantial net outflows, with billions of dollars being withdrawn from these instruments in the past few weeks. The net outflows have put additional downward pressure on the price of Bitcoin.
If the selling momentum increases, then Bitcoin may test lower price levels. A drop in prices below the $85,000-$88,000 level may indicate forthcoming short-term market stress.
According to Pratik Kala, a portfolio manager at Apollo Crypto, “Most are surprised by the lack of follow-through despite so many positive catalysts.”
On some exchanges, price action also shows more frequent 3% - 4% intraday swings as sellers outweigh buyers. Bitcoin’s decline also coincided with a drop in on‑chain activity. Data shows active addresses fell to a 12‑month low of 660,000, suggesting a weakening network use.
Across cryptocurrency markets, heavy forced liquidations intensified the recent sell‑off. Sharp price falls pushed automatic margin calls that closed leveraged long positions in Bitcoin and Ethereum.
In the last 24 hours, crypto positions liquidation reached over $584 million, with most of these positions being long positions that were liquidated as the prices dropped.
Moreover, the traders’ sentiment is still a concern due to equity volatility. Bitcoin’s market trend is diverging from the major stock indexes in the US, which have shown an increase this year. For instance, technology stocks have demonstrated stronger performance compared to Bitcoin.
Furthermore, employment data and inflation readings have given mixed signals. These have failed to rally risk appetites that typically support cryptocurrencies at year‑end.
Technical analysis highlights key Bitcoin support levels near the mid‑$80,000s and key resistance near $90,000. If these levels break decisively, the next trading zone may emerge closer to the low‑$80,000 range or rise toward $100,000.
Despite the recent sell‑off, Bitcoin continues to attract attention from institutional holders. Some large strategic buyers have added to their BTC positions, even as price momentum slows.
Also Read: Why Bitcoin’s Available Supply is Much Lower Than You Think
