Bitcoin Price Risks Deeper Drop Unless Bulls Hold $85K Support

Bitcoin price was stabilizing on Monday morning after the sudden decline from key resistance levels. Analysts cautioned that the asset could experience further pullbacks in case buyers failed to protect the support of $85,000.

Technical indicators reveal declining momentum across the high timeframe. Also, several charts highlight the need for a retest of the zone around the mid-$80K level before any recovery action.

Bitcoin Price Rejected at Major Resistance

Analyst TedPillows showed Bitcoin price facing a firm rejection at the $101,000–$102,000 zone, which has flipped into resistance following last week’s breakdown. BTC has since moved into the supply zones between $88,000 and $96,000, with each layer acting as an obstacle for the bulls. According to the analyst, reclaiming these zones is necessary before any bullish recovery.

Further, Ted highlighted the $88,000–$90,000 band as the key reclaim level. Failure to break above it would expose Bitcoin price to deeper declines toward the $82,000–$83,000 levels.

A stronger breakdown could push the crypto toward the $78,000–$80,000 liquidity zone, where historical demand has previously absorbed heavy selling. For now, the analyst holds a cautious sentiment until the market recovers the lower resistance block.

BTC Price Consolidates at High-Timeframe Support

In the meantime, analyst Michael van de Poppe observed that Bitcoin price was trading above the support of around $82,700-$85,500. This range served as a strong demand zone in the first half of the year.

The analyst suggested that this continued consolidation appeared positive, especially with the oversold states depicted by the RSI, which are consistent with the probable short-term bottom being developed.

Additionally, the analyst suggested that a retest of the $85,500 level will be consistent with the nearby CME gap. If BTC holds this zone, it could form a stable base for a recovery leg.

The analyst’s next upside target is the 20-day moving average near $95,000, which serves as resistance. A reclaim of the $93,000–$96,000 block would be needed to restore bullish structure.

CME Gap at $85.3K Draws Attention

According to analyst Ash Crypto, Bitcoin price was trading above a CME gap near $85,300 that remained unfilled. CME gaps, which occur when futures markets reopen at different prices after the weekend, often act as magnets in BTC’s price action.

The analyst noted that the current structure shows lower highs forming, suggesting weakening upward momentum.

Ash Crypto cautioned that Bitcoin could drift to the gap should control fail to be regained by buyers. This zone’s retest would be a standard technical correction as opposed to a macro bearish shift. BTC could rebound if it receives support at the gap. However, failure to hold above $85,300 will lead to a decline to lower support levels.

MACD Flip Raises Risk of Larger Correction

Another high-timeframe chart showed a bearish monthly MACD crossover, which has been historically followed by severe corrections in Bitcoin price cycles. Past bearish crosses have had declines of -53%, -61%, and -67%, which suggested that the indicator has a significant weight on the long-term momentum.

Also, the analyst pointed out that the current cross is aligned with the rejection at $116,000, a sign of declining strength in the trend.

The chart points to a possible decline towards $40,000, considering the historical retracement average of about 60%. This decline would indicate a deep retracement similar to the earlier mid-cycle corrections. Whether this will turn into a long-term recession or a short-term macro pullback will depend on the next monthly candles.