Bitcoin price fell sharply today after briefly pumping near $90,000, falling to $84,544 as the price selloff continued into its second month.
Bitcoin has lost 2% over the past 24 hours. It remains 5% below its seven-day high of $89,220 and hovers near the weekly low of $84,596. Trading volume reached $56 billion. Bitcoin’s market cap is $1.69 trillion. The circulating supply is about 19.96 million BTC out of a total of 21 million, according to Bitcoin Magazine Pro data.
The drop follows a brief rally where the Bitcoin price previously tested $89,000. The increase came after the US released new data for the consumer price index. Inflation rose 2.7% year-on-year in November, which is lower than expected. Core CPI, which excludes food and energy, fell to 2.6%, the lowest since early 2021.
Bitcoin jumped from intraday lows near $86,000 to challenge $89,000. Traders viewed the cooler inflation report as a potential signal for looser Federal Reserve policy in 2026. CME FedWatch data suggested slightly higher odds for a rate cut in March, although moves in January remain unlikely.
The rally did not last. Bitcoin price failed to break $90,000 and fell to $84,4000. This pattern is familiar: sharp spikes followed by rapid retracements.
What is pulling the bitcoin price down?
An ongoing challenge is US-listed spot Bitcoin ETFs. These funds, once a major source of demand, have seen net redemptions. The outflow removes institutional support that previously helped to stabilize the price. Without consistent ETF inflows, breakouts above $89,000 are harder to sustain.
Other economic indicators add uncertainty. Recent labor market data showed that the US unemployment rate rose to 4.6%, the highest since 2021. Job growth remains uneven. The mixed signals complicate the Federal Reserve’s policy, suggesting a cautious approach despite slowing inflation.
Political factors increase market complexity. President Donald Trump has publicly called for lower interest rates and proposed nominating a Fed chair who favors aggressive easing. Markets have largely treated the comments as noise, but the statements add a variable to the macro picture.
Technically, bitcoin price is consolidating rather than trending. Resistance forms just below $90,000. Supply above this level remains strong, held by investors who bought during previous rallies.
Analysts at Bitwise recently suggested that Bitcoin could break its historic four-year cycle. The firm noted that BTC may reach new record highs in 2026 with lower volatility and reduced correlation to stocks.
The Bitcoin Fear and Greed Index currently sits at 17/100, signaling extreme fear. Historically, readings in this range have coincided with underestimation. Contrarian investors see potential buying opportunities, although sentiment remains cautious.
Is $70,000 next?
Technical analysts from Bitcoin Magazine wrote earlier this week that the $84,000 support level is under pressure. If the bitcoin price falls below this point, it may test the $72,000 to $68,000 zone. Initial rejections are expected, but a break below $84,000 could trigger faster declines towards $70,000.
Bitcoin’s price may drop to the $72,000-$68,000 support zone after breaking the $84,000 level, with bears currently in control. A strong bounce is likely from the lower zone, potentially retesting $84,000, although the 4-year cycle suggests further downside may occur later in 2026.
Resistance extends from $94,000 to $118,000. Bulls will need significant buying volume to break above these levels per Bitcoin Magazine analysts.
Short-term momentum favors sellers. Last week, Bitcoin price closed the weekly candle in the red, failing to hold on to gains near $94,000. Bears are well positioned to push prices down this week.
At the time of writing, the bitcoin price is $84,812. Trading volume reached $56 billion. Bitcoin’s market cap is $1.69 trillion. The circulating supply is about 19.96 million BTC out of a total of 21 million, according to Bitcoin Magazine Pro data.