Is Bitcoin Dropping Further? Why Experts Predict One Last Shakeout Before the Rally

Bitcoin breaks below key support, analysts eye $74K–$81K as bottom range before a 4–8 week rally. Market waits for macro data impact.

Bitcoin (BTC) is facing pressure after falling below important support levels. Several market watchers believe a final dip may come before a short-term recovery. This takes place as traders prepare for upcoming economic reports and low year-end liquidity.

BTC Slips Below Key Trendline

Bitcoin dropped below $86,500, breaking out of an upward channel that had been in place since late November. This move points to weakness in the current trend. Colin Talks Crypto, a popular industry analyst, noted that the cryptocurrency looks oversold and close to a short-term bottom.

He wrote, “A capitulation wick down will be the final shakeout,” suggesting that the next sharp drop could mark the bottom. He expects the range between $74,000 and $81,000 to offer support, adding,

“I’m fully expecting a nice juicy bounce that lasts for 4–8 weeks after the bottom is found.”

He also mentioned this could happen before the end of the month. Bitcoin recently touched $85,200, the lowest point since December 2, when a major leverage flush occurred. This selling pattern fits the idea that a final wave down may shake out weaker holders before a rebound.

Holding $87K is Critical

Analyst Ali Martinez shared a view that Bitcoin is now at a major decision point. His chart shows BTC trading just above a rising support line. “Hold $87,000 or risk a move toward $70,000,” he warned. A close below that level could trigger a larger drop toward $80,500, or even $74,600.

At the same time, resistance levels are marked around $92,500 and $95,600. If Bitcoin stays above $87,000 and pushes higher, short-term upside may still be possible. But for now, the price is stuck between pressure from both sides.

Another analyst, CRYPTOWZRD, added:

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“$BTC is attempting to break the higher low trendline. This will apply more pressure towards $73,000 if it plays out.”

Market Sentiment and Liquidity Trends

Bitcoin’s 24-hour trading volume is around $49.9 billion. The price has fallen almost 4% in the past day and over 4% over the last seven days. The total crypto market value also fell to $3.02 trillion — the lowest in three weeks.

Daan Crypto Trades pointed out that global liquidity is rising, but Bitcoin has not responded.

“There’s still a lot of 4-year cycle selling paired with tax loss harvesting into the end of the year,” he said.

He expects Bitcoin to have a better shot at growth in early 2026, once volume returns and seasonal selling ends.

Meanwhile, the next move may be driven by economic figures due this week, including unemployment numbers and PMI data. Traders are watching to see if this will bring more selling or help prices recover.