- Bitcoin’s price has struggled since slipping from the psychological $90,000 level.
- There is a risk of further bearish expansion below $87,000 as risk assets wobble.
- BTC could drop to $85,000 or lower if bears take control.
The holiday season is underway, but unlike previous cycles, Bitcoin (BTC) continues to trade in a tight range around $87,000 amid a subdued market environment.
On Wednesday, BTC fell to intraday lows near $86,411 as thinner holiday liquidity and weakening momentum left bulls unable to reclaim the $88,000 area.
Bitcoin’s inability to regain the $90,000 threshold comes amid sideways moves and broader market caution, with apparent cooling institutional demand after the heavy inflows seen earlier in 2025.
Bitcoin slides amid ETF outflows
Recent weeks have seen steady outflows from U.S. spot Bitcoin exchange-traded funds (ETFs), a shift that aligns with a more bearish tone toward BTC and its ETFs among larger investors.
Data from SoSoValue showed spot Bitcoin ETFs experienced net outflows of roughly $189 million on Tuesday, December 23.
That marked a fourth consecutive day of negative flows, consistent with wider year-end trends such as risk reduction and portfolio rebalancing heading into the close of 2025.
Market observers say this pattern has contributed to reduced institutional participation.
On-chain analytics provider Glassnode highlighted the trend in a recent post shared on X (formerly Twitter).
Analysts noted the 30-day simple moving average (SMA) of net flows into both Bitcoin and Ethereum ETFs has been negative since early November.
While total inflows for the year remain substantial—far exceeding $57 billion—the recent outflows point to a pause in institutional appetite.
“This persistence suggests a phase of muted participation and partial disengagement from institutional allocators, reinforcing the broader liquidity contraction across the crypto market,” the platform said.
Large outflows coincide with Bitcoin’s failure to retain gains above major psychological levels of $100,000 and later $90,000.
In the near term, downward pressure leaves bulls battling risks 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: risks of deeper decline
From a technical standpoint, Bitcoin has faced meaningful headwinds since dropping from the $90,000 mark.
Buyers’ attempts to spark a recovery have faded after earlier selling pushed prices below $85,000.
Rejection from above $88,000 has now put BTC back toward lower support levels. Notably, this dynamic further differentiates Bitcoin from gold, which surged to a record above $4,500.
Key indicators point to diminishing upside momentum.
The Relative Strength Index (RSI) has slipped below the neutral 50 level, signaling a loss of buying strength.
Similarly, the Moving Average Convergence Divergence (MACD) shows converging lines that indicate waning bullish momentum. Without fresh demand, BTC could seek support around $85,000 or lower.