Bitcoin (BTC), the most popular cryptocurrency in the world, has been going up and down a lot lately as both bulls and bears fight to take control. Bitcoin set a high of almost $94,000 a few days ago, but it has since dropped below the psychological barrier of $90,000. This has traders and investors wondering whether the bull run is over or if this is just a short dip before another rise.
The crypto market appears divided as the weekend approaches, and Bitcoin’s recent behavior has many wondering whether this year’s rally is over. What’s happening with the latest decrease, what traders should watch, and where Bitcoin’s price may move in the next weeks. At Zavros Network, we will uncover all the latest details, stay tuned!
What’s Happening Now?
Bitcoin’s price moved a lot last week. Monday, December 1 saw BTC dip below $84,600 briefly but dramatically. Bitcoin quickly recovered to $94,000 on Thursday, December 4, as traders bought the slump. But the relief didn’t last long.
Bitcoin has dropped again on Friday, falling below $90,000. Bitcoin is now at $89,400, which represents a loss of more than 3% in the last 24 hours. This most recent downturn has sparked a fresh wave of speculation, particularly given the general mood in the market around the cryptocurrency.
CoinGecko says that Bitcoin has also dropped by around 10% in the previous year. This has led many people to worry whether the upward trend that started in late 2025 is coming to an end.
Key Levels to Watch: Why $80,500 Could Be Bitcoin’s Next Local Low
In a recent post on X (previously Twitter), Wedson, a well-known cryptocurrency analyst and the CEO of Alphractal, spoke about certain important price levels that Bitcoin traders should keep an eye on.
Wedson says that losing the $89,800 threshold is quite critical. This important level has kept Bitcoin’s price over $90,000 in the last few days, but now that BTC has dropped below it, the cryptocurrency is more likely to lose value.
- Loss of $89,800: A Sign of Negative Pressure
If the price drops below $89,800, bears are taking over. Wedson said that if Bitcoin doesn’t get back to this level soon, we may witness a period where bulls start to buy again at lower prices, or a phase when bears start to redistribute, which could bring the price down a lot, maybe even to $70,000 or below.
- Next Level to Watch: $86,500
The next important level is $86,500. If Bitcoin loses that support too, the price drops lower than $80,500, which could be a local low. If that occurs, it would be a great time for investors to get in on the action and “buy the dip.” This might be a support zone where bulls come back in to hold up the price before it goes up again.
What’s Behind the Fall?
Bitcoin’s most recent price drop seems to be caused by a number of things, including the loss of important on-chain support levels and a change in how the market as a whole feels:
- Macro Economic Sentiment
Bitcoin’s recovery has been hurt by worries about the economy as a whole. Across the world, people are becoming less willing to take risks, which is affecting assets that are risky, like cryptocurrency. As the economy becomes less stable, investors have begun taking money out of risky assets like Bitcoin. At the same time, there has been a bigger sell-off in stocks throughout the world, which has made the cryptocurrency weaker.
- Bitcoin’s Liquidity Drain
There is less money floating around in the cryptocurrency markets now. Institutional demand, which aided Bitcoin’s recent ascent, has cooled considerably. Also, a lot of people who have held Bitcoin for a long time have begun to cash out, making money from their big gains. Bitcoin is more likely to have big price swings since there isn’t much fresh money pouring into the market.
- Failed On-Chain Support Levels
Bitcoin was unable to sustain essential on-chain levels. When large-scale buyers like institutions and investors pull out of a market at a given price point, it might indicate that prices are about to drop. Since the $89,800 zone failed to hold, the bears remain in control. The market can continue sideways or move lower if things don’t improve quickly.
What Might Happen Next?
If BTC loses the critical $88,000–$90,000 zone or if macro pressure is intense, it might fall considerably more, perhaps to $80,000–$82,000 (or even below).
In a neutral/sideways scenario, the market might enter a period of consolidation, with bitcoin hovering between $82,000 and $94,000 for a while until something new happens.
If the support level remains intact and more buyers enter the market, especially if institutional investors start buying again, it’s still possible for prices to rise to $93,000–$94,000.
Conclusion: A Critical Time for Bitcoin Investors
When the price of Bitcoin drops below $90,000, people start to worry. At the present time, there are substantial support levels at $80,500, $89,800, and $86,500. How Bitcoin acts around these levels may affect the market’s short-term trajectory.
Bulls and bears in the market are always competing with one another. Anyone planning to get into the Bitcoin market must be familiar with its price and support levels. If Bitcoin drops below the low $80,000s, it may be a good opportunity to purchase the dip; nevertheless, you need to be patient since Bitcoin is fragile.
