- Bitcoin’s price has struggled since falling below the psychological $90,000 level.
- With risk assets fluctuating, there is a risk of extended downside below $87,000.
- If bears take control, BTC could slide toward support below $85,000.
The holiday season has arrived, but unlike prior cycles, Bitcoin (BTC) is trading in a narrow range around $87,000 amid a bearish backdrop.
On Wednesday, BTC dipped to a low of $86,411 as seasonal liquidity faded and momentum weakened, leaving bulls unable to push prices back above $88,000.
Bitcoin’s failure to reclaim the $90,000 level comes amid sideways price action and a cooling in institutional demand after strong inflows earlier in 2025, prompting greater market caution.
Bitcoin falls as ETF outflows mount
In recent weeks, U.S. spot Bitcoin exchange-traded funds (ETFs) have experienced consecutive withdrawals, aligning with a more cautious stance among large investors toward BTC and related funds.
Data from SoSoValue showed that spot Bitcoin ETFs logged roughly $189 million in net outflows on Tuesday, December 23.
That marked the fourth straight day of negative flows. The trend mirrors a broader pattern observed through the end of 2025, consistent with year-end risk reduction and portfolio rebalancing.
Market observers say these outflows are contributing to reduced institutional participation.
On-chain analytics firm Glassnode highlighted this pattern in a recent comment shared on X (formerly Twitter).
Analysts noted that the 30-day simple moving average (SMA) of net flows into both Bitcoin and Ethereum ETFs has remained negative since early November.
Although cumulative inflows for the year still exceed $57 billion, the recent withdrawals indicate a stagnation in institutional appetite.
“This persistence suggests a phase of muted participation and partial disengagement from institutional allocators, reinforcing the broader liquidity contraction,” the platform said.
The substantial outflows have coincided with Bitcoin’s inability to sustain gains above key psychological thresholds of $100,000 and $90,000.
Near-term pressure leaves bulls defending against downside around $87,000.
Since early November, the 30D-SMA of net flows into both Bitcoin and Ethereum ETFs has turned negative and remained so.
This persistence suggests a phase of muted participation and partial disengagement from institutional allocators, reinforcing the broader liquidity contraction… pic.twitter.com/1aglRpQqD9— glassnode (@glassnode) December 23, 2025
Bitcoin price outlook: Is further downside likely?
From a technical perspective, Bitcoin has faced headwinds since slipping below the $90,000 area.
Attempts by buyers to spark a recovery were derailed earlier this month when selling pushed prices below $85,000.
A failed bounce from above $88,000 has sent BTC back toward lower support levels. Notably, Bitcoin has also decoupled further from gold as the precious metal surged to a new high above $4,500.
Bitcoin price chart
Key indicators point to dwindling upward momentum.
The relative strength index (RSI) has slipped below the neutral 50 level, signaling weakness in buying pressure.
Likewise, the moving average convergence divergence (MACD) shows converging lines consistent with fading bullish momentum. Without fresh demand, BTC may seek support below $85,000.