Bitcoin Price Dips Below $90,000 — Is the Recovery Coming to an End?

As the Bitcoin market experiences fluctuations, the price has seen a tumultuous week, leaving traders divided on its future direction. Currently, it seems that the bears are gaining the upper hand against the bulls.

Key Takeaways

Bitcoin's price has fallen below the $90,000 mark after reaching a local high of $94,000.
Analysts suggest that losing the $89,800 level may lead to potential new lows, with $80,500 being identified as a significant level.
The market exhibits a mixed performance, with both bulls and bears vying for control.
Investors are keenly watching for buying opportunities as the price movements unfold.

Bitcoin price

Heading into the weekend, Bitcoin's price slipped from a recent high of approximately $94,000, falling below the crucial psychological barrier of $90,000. This decline has raised concerns among investors about whether this is merely a temporary setback or a sign that the upward recovery has ended.

Potential Local Low at $80,500 for BTC

In a post dated December 5 on the social media platform X, Alphractal's CEO shared valuable insights into Bitcoin's recent price drop below $90,000. The on-chain analyst emphasized that breaching the $89,800 threshold is a particularly significant event in this latest downturn.

Previously, another analyst, Wedson, assessed what might happen to Bitcoin's price if it falls below $89,800. He suggested that dropping below this level could lead to an accumulation phase for buyers (the bulls) or a redistribution phase for sellers (the bears).

For the bulls, an accumulation phase might initially see lower prices, but it could set the stage for a resurgence in Bitcoin's value back above the latest peaks. On the other hand, a redistribution phase could push Bitcoin down to around the $70,000 level.

Bitcoin price
Source: @joao_wedson on X

The Alphractal CEO also pointed out that Bitcoin's failure to maintain key on-chain levels increases the likelihood of a prolonged sideways trend. “Sideways action is the cause — the big pumps or dumps are just the effect,” Wedson noted in an earlier post on X.

Additionally, Wedson highlighted that the next critical level to monitor is $86,500. If this level is lost, it could significantly heighten the chances of a new local low forming around $80,500, which might present a buying opportunity for investors looking to enter the market.

Bitcoin Price Overview

As previously mentioned, the past week has brought both highs and lows for Bitcoin. The price fell to $84,600 on Monday, December 1, before staging a recovery to about $94,000 on Thursday, December 4.

At the time of this writing, Bitcoin is trading at approximately $89,415, indicating a decline of over 3% in just 24 hours. According to CoinGecko data, Bitcoin’s price has dropped nearly 10% over the past year.

Bitcoin price
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView