With the holidays draining liquidity and uncertainty still in the air, the cryptocurrency market is clearly moving more cautiously. Bitcoin has managed to remain stable, but it is difficult to ignore the increase in ETF outflows and slowing momentum.
At this point, it is unclear whether the BTC price will drop or is simply consolidating ahead of the next rally.
Summary
- BTC is trading near $87,500, consolidating in the $86,400 to $88,000 range amid cautious holiday trading.
- Support between $86,400 and $86,700 remains strong, but $175 million in ETF outflows are weighing on market sentiment.
- A break above $89,000-$90,000 could push BTC towards $93,000-$94,000, indicating renewed bullish momentum.
- Downside risks remain if support fails, with possible pullbacks to $85,500, $84,000 to $82,000, or even $80,000 in a more bearish scenario.
Current market scenario
At Christmas, Bitcoin (btc) remains stable at around $87,500, gaining approximately 0.3% in the last 24 hours. BTC price remains range-bound between $86,400 and $88,000, pointing to consolidation rather than panic selling.
Support between $86,400 and $86,700 continues to show strength, attracting buyers every time the price touches this area and keeping market confidence intact.
That said, ETF outflows are weighing on market sentiment. Bitcoin spot ETFs recorded $175.29 million in net outflows on December 24 and if this trend continues, it could put short-term pressure on the BTC price.
Bullish outlook
Bitcoin’s technical structure remains constructive, with the price holding above short-term support and keeping bullish expectations alive. That being said, buyers need to break through the $89,000 to $90,000 resistance area to really regain momentum as this zone has acted as a strong ceiling.
If the price breaks above and closes the day higher, market sentiment is likely to improve. The BTC forecast in that case would target the $93,000 to $94,000 range, an area known for prior selling pressure. Such a move would imply that outflows from ETF funds no longer dominate the price action.
Downside risks
Bitcoin may seem stable in the short term, but the downside is not ruled out. Falling below $86,400 while ETF Outflows persisting could accelerate the pullback, with $85,500 the first support to monitor.
If the selling continues, the BTC price prediction becomes more cautious, targeting the $84,000 to $82,000 range, where buyers have intervened before. In a more bearish market, Bitcoin could even test $80,000, shaking off late entrants.
Bitcoin price prediction based on current levels
Overall, this Bitcoin price prediction shows that the market is caught between a key support and resistance. BTC price action has been consolidating rather than selling off, with heavy buying near $86,400. Still, current ETF outflows remain a downside risk.
As long as support holds, BTC’s outlook remains neutral to cautiously bullish, pointing to potential gains between $93,000 and $94,000.
If these levels do not hold, Bitcoin could fall further towards $82,000-$80,000. For now, it is advisable to stay on the sidelines and let the market show its next direction.
