- Bitcoin price has struggled since falling from the psychological $90,000 level.
- There is a risk of further downside below $87,000 as risk assets remain fragile.
- BTC could drop toward $85,000 or lower if bears regain control.
The holiday season is here, but unlike previous cycles, Bitcoin (BTC) is trading in a narrow range around $87,000 amid a cooling market environment.
On Wednesday, BTC dipped to a low of $86,411 amid thinning holiday liquidity and weakening momentum, as attempts to push prices above $88,000 failed to hold.
Bitcoin’s inability to reclaim the $90,000 level has unfolded against a backdrop of sideways price action and broader caution, where institutional demand appears to have cooled after strong inflows earlier in 2025.
Bitcoin slips as ETF outflows continue
Recent weeks have seen persistent withdrawals from US spot Bitcoin exchange-traded funds (ETFs), a shift that mirrors the bearish tone among larger investors for BTC and its ETFs.
Data from SoSoValue shows spot Bitcoin ETFs recorded net outflows of roughly $189 million on Tuesday, December 23.
That marked a fourth consecutive day of negative flows. The pattern aligns with a broader end-of-year trend when risk reduction and portfolio rebalancing typically occur.
Market participants say this has contributed to reduced institutional participation.
On-chain analysis firm Glassnode highlighted this 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 turned negative in early November and has remained so.
Although cumulative inflows for the year remain large—well in excess of $57 billion—recent outflows indicate 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.
Significant outflows have coincided with Bitcoin’s failure to sustain gains above the key psychological thresholds of $100,000 and later $90,000.
Short-term pressure is forcing rallies to contend with the risk of a decline toward the $87,000 area.
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 standpoint, Bitcoin has faced meaningful headwinds since pulling back from $90,000.
Buyers’ attempts to engineer a sustained rebound have faltered, with selling pressure pushing the price below $85,000 earlier in the month.
Rejections near $88,000 have sent BTC back toward lower support levels. Notably, Bitcoin’s recent weakness has contrasted with gold’s surge to record highs above $4,500.
Key indicators point to waning bullish 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 suggest fading upward momentum. Without fresh demand, BTC may seek support near $85,000 or lower.
Traders and investors should watch ETF flow data and short-term technical levels closely: a sustained return of inflows or a reestablished bid above $88,000 would reduce the risk of further declines, while continued outflows and failed rebounds could open the door to deeper pullbacks.