Bitcoin bears eye breakdown as key support comes under pressure

Current Price: $90298.71

Direction: SHORT

Confidence Level: 68% (Multiple professional traders highlight bearish structures and risk of breakdown; sentiment mixed but leaning negative with strong resistance overhead near $92.5k–$94k)

Targets:
- T1 = $88200
- T2 = $84500

Stop Levels:
- S1 = $91800
- S2 = $93000


**Wisdom of Professional Traders:**
The collective view from professional traders across the market points to a precarious setup for Bitcoin. Several traders note that price is repeatedly failing to hold above the $92,000–$94,000 zone, forming lower highs and struggling to gather bullish momentum. Many identify $88,000 as a crucial short-term support, with a decisive break likely triggering sell stops toward deeper levels. This consensus stems from technical patterns like rising wedges, bearish divergences, and prior breakdown reactions at similar levels.

**Key Insights:**
Here's what's driving my thinking: Bitcoin is stuck just above $89k–$90k, with repeated rejection at the $92k–$94k area. Multiple traders see this resistance as "firm" and report that the bullish breakout setups have failed to trigger. The sentiment in X discussions also reflects caution, with traders warning that the market could mimic prior corrections following Bank of Japan rate hikes—historically leading to 20–30% declines.

On-chain and flows data adds to the short bias: active addresses are down, spot ETF inflows have slowed, and exchange order books show heavier sell interest at $92k+. A break under $88k could open the way to $84k–$82k in short order, especially with elevated volatility readings and macro risks still present.

**Recent Performance:**
Bitcoin has been volatile in recent sessions, trading between $88,900 and $91,200 after sliding from highs near $94,000 last week. Attempts to push higher met resistance at the 50‑day SMA (~$90,100) and the upper bound near $94,000. The price repeatedly bounced from $88k but without meaningful follow-through, signaling seller strength. This mirrors the recent pattern of rangebound trade giving way to downside after failed rallies.

**Expert Analysis:**
Professional traders I’m tracking emphasize the $88,000 support as a “line in the sand.” Several highlight that the MACD histogram has turned negative and RSI remains mid-range, leaving little momentum for a sustained bullish move. Stops are layered below $88k, and a breach could cascade liquidity into the $84k–$82k range. The resistance cluster at $92,500–$94,000 is repeatedly sold into, suggesting large players are distributing supply here. Analysts also connect the setup to macro drivers—rate expectations and liquidity trends—that historically weigh on Bitcoin in December.

**News Impact:**
Recent headlines around upcoming Bank of Japan policy decisions add potential catalysts for volatility. Traders recall prior BoJ hikes leading to sizable Bitcoin drawdowns, tied to unwinding of the yen carry trade. Without fresh bullish news to support inflows, these macro events could act as triggers for a technical breakdown. ETF inflow slowdown further removes a key support pillar, intensifying vulnerability if support breaks.

**Trading Recommendation:**
Here’s my take: With strong resistance overhead and repeated failures to break above $92k–$94k, the risk skew favors a short bias while price hovers near key support. I’d enter shorts on a clean break below $88,200 targeting $84,500, with protective stops just above $91,800 to cap risk. If momentum accelerates, the second target near $84.5k is realistic within the week. Keep position sizes moderate—around 3–5% of capital—and be ready to cover if Bitcoin recaptures and holds above $92k.