- The Bitcoin price has struggled since dipping from the psychological level of $90,000.
- There’s risk for a potential bearish extension below $87,000 as risk assets waver.
- BTC price could dip to $85,000 or lower if bears take control.
The holiday season is here, but unlike previous cycles, Bitcoin (BTC) continues to trade in a narrow range around $87,000 amid bearish conditions.
On Wednesday, BTC fell to lows of $86,411 amid thinning holiday liquidity and waning momentum, with bulls having failed to strengthen above $88,000.
Bitcoin’s failure to reclaim the $90,000 level comes amid sideways action punctuated by broader market caution, where institutional demand appears to have cooled following robust inflows earlier in 2025.
Bitcoin slips amid ETF outflows
The past weeks have seen ongoing withdrawals from US spot Bitcoin exchange-traded funds (ETFs), a shift that aligns with bearish sentiment for BTC and its ETFs from larger investors.
According to data from SoSoValue, spot Bitcoin ETFs experienced a net outflow of approximately $189 million on Tuesday, December 23.
This brought the negative flow streak to four consecutive days. This pattern aligns with broader trends observed throughout late 2025, where year-end de-risking and portfolio rebalancing are expected.
Market experts say this has contributed to reduced institutional participation.
On-chain analytics firm Glassnode has highlighted this trend in recent commentary shared on X (formerly Twitter).
Analysts noted that the 30-day simple moving average (SMA) of net flows into both Bitcoin and Ethereum ETFs has remained negative since early November.
While cumulative inflows for the year remain substantial, well above $57 billion, the recent outflows point to a pause in institutional appetite
“This persistence suggests a phase of muted participation and partial disengagement from institutional allocators, reinforcing the broader liquidity contraction across the crypto market,” the platform stated.
Huge outflows coincide with Bitcoin’s inability to hold gains above the key psychological thresholds at $100,000 and then $90,000.
Short-term pressure currently sees bulls battle downside risks around $87,000.
Since early November, the 30D-SMA of net flows into both Bitcoin and Ethereum ETFs has turned negative and remained so.
This persistence suggests a phase of muted participation and partial disengagement from institutional allocators, reinforcing the broader liquidity contraction… pic.twitter.com/1aglRpQqD9— glassnode (@glassnode) December 23, 2025
Bitcoin price outlook: potential for further dips?
From a technical perspective, Bitcoin has faced significant challenges since retreating from the $90,000 mark.
Attempts by buyers to engineer a rebound have faltered as selling pushed prices below $85,000 earlier in the month.
Rejection from above $88,000 now sees BTC revisit lower support levels. Interestingly, this sees Bitcoin further decouple from gold, with the precious metal exploding to a record high above $4,500.
Bitcoin price chart by TradingView
Key indicators point to diminishing upside momentum.
The Relative Strength Index (RSI) has dipped below the neutral 50 level, signaling a loss of buying strength.
Similarly, the Moving Average Convergence Divergence (MACD) shows converging lines that suggest fading bullish impetus. If fresh demand does not materialize, BTC could seek support around $85,000 or lower.
