The bitcoin price experienced a significant decline today, following a brief surge near the $90,000 mark, which saw it jump above $89,000 before sliding back down to $84,544 as the ongoing sell-off entered its second month. This downward trend has been a dominant force in the cryptocurrency market, with bitcoin losing 2% of its value over the past 24 hours.
As of the latest update, bitcoin remains 5% below its seven-day high of $89,220 and is hovering near the week’s low of $84,596. The trading volume has reached an impressive $56 billion, with bitcoin’s market capitalization standing at $1.69 trillion. The circulating supply is approximately 19.96 million BTC out of a total of 21 million, according to data from Bitcoin Magazine Pro. This data provides valuable insights into the current state of the bitcoin market, highlighting the need for investors to stay informed about market trends and fluctuations.
The recent drop in bitcoin’s price follows a brief rally that occurred after the release of the U.S. Consumer Price Index (CPI) data, which showed a 2.7% year-over-year increase in inflation for November, lower than expected. The core CPI, excluding food and energy, fell to 2.6%, its lowest level since early 2021. This news led to a surge in bitcoin’s price, as traders viewed the cooler inflation report as a potential signal for a more relaxed Federal Reserve policy in 2026. However, this rally was short-lived, as the bitcoin price failed to break the $90,000 barrier and subsequently slid to $84,400.
This pattern of sharp spikes followed by quick retracements is a familiar one in the cryptocurrency market. The inability of bitcoin to sustain its gains above $89,000 has raised concerns among investors, who are now wondering what factors are contributing to the downward pressure on the bitcoin price. One major challenge is the persistent outflows from U.S.-listed spot Bitcoin ETFs, which have historically been a significant source of demand for the cryptocurrency. The removal of institutional support that these funds once provided has made it harder for bitcoin to break out above the $89,000 level.
What’s driving the decline in bitcoin’s price?
The outflows from U.S.-listed spot Bitcoin ETFs are a significant factor, but other economic indicators are also adding to the uncertainty. Recent labor market data showed a rise in U.S. unemployment to 4.6%, its highest level since 2021, with job growth remaining uneven. These mixed signals are complicating the Federal Reserve’s policy decisions, suggesting a cautious approach despite easing inflation. Additionally, political factors, such as President Donald Trump’s public calls for lower interest rates, are introducing more variables into the macroeconomic picture.
From a technical perspective, the bitcoin price is currently consolidating rather than trending. Resistance is forming just below the $90,000 level, with supply above this mark remaining strong, held by investors who bought during prior rallies. Analysts at Bitwise have suggested that bitcoin could break its historical four-year cycle, potentially reaching new all-time highs in 2026 with lower volatility and reduced correlation to equities.
The Bitcoin Fear and Greed Index is currently sitting at 17/100, signaling extreme fear among investors. Historically, readings in this range have coincided with undervaluation, presenting potential buying opportunities for contrarian investors. However, sentiment remains cautious, with many investors waiting for clearer signals before making their next move.
Is $70,000 the next target for bitcoin?
Technical analysts from Bitcoin Magazine have suggested that the $84,000 support level is under pressure. If the bitcoin price falls below this point, it could test the $72,000 to $68,000 zone, with initial bounces expected. A break below $84,000 could trigger faster declines toward $70,000. The bears are currently in control, and a strong bounce is likely from the lower zone, potentially retesting $84,000. However, the 4-Year Cycle suggests that further downside could occur later in 2026.
Resistance extends from $94,000 to $118,000, and bulls will need substantial buying volume to break above these levels. Short-term momentum favors sellers, with the Bitcoin price closing the weekly candle in red and failing to sustain gains near $94,000. Bears are well-positioned to push prices lower this week.
As of the time of writing, the bitcoin price is $84,812, with a trading volume of $56 billion and a market capitalization of $1.69 trillion. The circulating supply is roughly 19.96 million BTC out of a total of 21 million, according to Bitcoin Magazine Pro data. Investors are advised to stay informed and adapt to the changing market conditions to make informed decisions.
