The price of Bitcoin is once again under pressure after failing to sustain higher levels, leaving the cryptocurrency market more cautious. The drop below $85,000 comes at a time when risk appetite has diminished in global markets, with investors showing hesitation towards volatile assets. Although the movement has raised concerns about a deeper correction, the current decline appears to be more driven by demand fatigue and macro positioning than by panic selling. The key question now is whether Bitcoin is just consolidating or preparing for another drop.
What is causing Bitcoin to drop today
Bitcoin is not falling because of a crash event. It is sliding because support has broken, buyers hesitated, the broader cryptocurrency market weakened, and macroeconomic conditions discouraged fresh risk-taking—all happening at the same time. The drop in Bitcoin today is being driven by the following factors.
Key support broken
Bitcoin fell below the support zone of $88,000–$87,000, a level that had held several times before. Once this floor failed, technical selling accelerated, dragging BTC towards the $85,000–$85,200 area. This movement triggered stop-losses and short-term de-risking, rather than panic liquidation.
Buyers have retreated at higher levels
Spot demand failed to absorb supply near resistance. Without aggressive buyers defending the breakout zone, rallies faded quickly. This lack of follow-through left Bitcoin vulnerable as the price fell below support.
The broader cryptocurrency market has turned risk-averse
The selling pressure has not been limited to Bitcoin. Most major cryptocurrencies traded lower, pulling the total cryptocurrency market down in the last 24 hours. When the broader market weakens together, Bitcoin typically absorbs most of the selling pressure.
Macroeconomic headwinds are limiting risk appetite
A combination of geopolitical uncertainties and the Federal Reserve maintaining rates stable without dovish guidance has kept investors cautious. As a result, capital has tilted towards safer assets, while high-risk exposure, such as cryptocurrencies, has seen reduced flows.
Bitcoin breaks the bear flag structure
Bitcoin's latest pullback is now clearly reflected on longer time frame charts. After failing to hold above the $90,000 region, BTC has fallen back below a critical support zone, shifting market sentiment to caution. The weekly structure shows diminishing bullish control as buyers struggle to defend key levels amidst weak follow-through.
The weekly chart shows Bitcoin breaking below the support band of $88,000–$85,000, which is the channel of a bear flag. Volume did not expand during recovery attempts, indicating weak conviction from buyers. If BTC fails to recover $90,000–$92,000, the structure opens a downside risk towards $80,000, followed by deeper support near $75,000. The broader trend remains corrective unless the price decisively recovers the previous resistance.
What comes next? Will the BTC price drop below $80,000?
The weekly structure of Bitcoin continues to tilt negatively, with selling pressure absorbing more and more buying volume. The weekly MACD has turned negative again, while the RSI is moving away towards lower support, reflecting weakened momentum. From a pattern perspective, the confirmation of the bear flag break would open a downside risk towards the $70,000 region, aligning with the projected length of the flagpole. However, the $80,400 support zone remains critical. If buyers can defend this level, a short-term rebound may occur. Failure to hold it, however, would likely keep Bitcoin testing lower demand zones.
