- Bitcoin remains below key EMA support, keeping short-term momentum skewed towards sellers
- Support near $88K is critical, as losing this zone could open up a deeper downward move
- Dropping open interest and choppy spots flows suggest that post-rally risks reduction continues
Bitcoin fell back into a downtrend on the chart for 4 hours after failing to defend the area where it had previously broken out. BTC reversed abruptly after reaching a high near $97.971. It then slipped below the EMA cluster which is a sign of weakened momentum.
Traders are now watching to see if the recent bounce will hold or if it is just a temporary corrective move. Bitcoin traded recently near $89 464. The price is still under several heavy resistance areas that could limit upward attempts.
BTC price trend shows sellers still control momentum
BTC price trend shows sellers still control momentum
Bitcoin is facing its first rebound cap at $90,758, and this now acts as a pivot in the near-term. The $91,629-to-91,816 range is also notable as a former zone of structure with increased EMA pressure. A stronger resistance band is located between $92,445 to $92,874, which sellers may defend aggressively.
BTC must break out above this area in order to improve sentiment. Bulls will need to reclaim at least $95,480 in order to change the short-term trend to their favor.
Bitcoin’s immediate support is around $89 606, which coincides with an important Fibonacci level. The $88,000 to $87.777 demand zone is the main area that holds the chart together.
If BTC loses this region, the selling pressure could accelerate towards $87,630. A deeper decline could expose $84,436 to be the next major support.
Leverage cools as open interest pulls back
Leverage cools as open interest pulls back
Bitcoin open interest increased strongly through 2025, as leverage increased along with price strength. The rally in late-2025 pushed open interest to cycle highs above $80B. This buildup did last.
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As BTC began to decline from its peak, open interest decreased, signaling that traders had reduced their risk and closed their positions. By Jan. 21, 2020, open interest was near $60.44B and BTC traded at around $88,348, signaling a post-shakeout consolidate.
Spot Flows Remain Choppy as Tom Lee Flags a 2026 Risk
Spot Flows Remain Choppy as Tom Lee Flags a 2026 Risk
Repeated outflow bars showed a steady distribution. In addition, there were short inflow spikes during stronger pushes but they did last only a short time.
Outflows soared in mid-to late November and coincided with a sharp drop. After this flush, flows remained mixed, but the latest reading showed that a net inflow of around $107M.
Tom Lee, the Fundstrat Research head, warned that 2026 may bring a painful drop in crypto and other markets. He also said that Bitcoin could still reach an all-time high if the market recovers fully. Lee also warned of a possible stock market correction between 15% and 20%, with policy changes determining which sectors outperform.
Technical Outlook of Bitcoin (BTC).
Technical Outlook of Bitcoin (BTC).
Bitcoin is going through a volatile phase of resetting.
The first upside level is $90,758, followed by $91,629 -$91,816, the area where prior structure and EMA support converge. A stronger breakout would open a path to $92,445 – $92,874, which is the key resistance ceiling. This must be flipped in order to restore short-term bullish movement. Beyond that level, $95,480 is the level which would reset the broader trend bias.
On the downside, $89 606 is a support. Below that, the $88,000 to $87,777 demand area remains critical. If this area is not held, the downside could be extended to $87,630 or even $84,436. The technical picture indicates that BTC is consolidating following a sharp deleveraging movement, with momentum still favouring sellers below EMA band.
Will Bitcoin continue to fall or will it stabilize?
Will Bitcoin continue to fall or will it stabilize?
BTC’s near term direction depends on whether buyers can defend the $87,777 long-enough to challenge $91,600-$92,000. Compression, cooling of open interest, and mixed spot flow indicate that volatility is on the rise. A clean reclaim could revive the upside momentum. However, a breakdown may extend the correction.
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