Bitcoin falls below $94,000 as traders eye $85,000 support

Bitcoin's (CRYPTO:BTC) price slipped below $94,000 on Dec. 23 as bearish sentiment dominated the market, with traders anticipating further declines toward $85,000.  

According to Cointelegraph Markets Pro and TradingView, BTC/USD recorded a 1.2% daily loss, extending its 15% drawdown from last week’s all-time high of $99,500.

Analysts suggest the failure to reclaim critical support levels indicates further downside potential.  

Popular X analytics account Bitcoindata21 warned that Bitcoin’s recent volume-weighted average price (VWAP) retests show bearish momentum.

"A retest of $92K for Bitcoin looks likely. As of right now, $85K–$86K seems like the area for bulls to consider going all in," they stated.  

Other traders, such as CrypNuevo, echoed the bearish outlook, predicting a revisit to lows near $90,000 before a possible market recovery.

"It’s hard to imagine a V-shaped recovery from here. I expect either a W-formation or a full wick-fill around $90K," CrypNuevo explained.  

Adding to the cautious sentiment, trader Jelle highlighted similarities between Bitcoin's current price action and late 2023 patterns.

"Not ruling out a sweep below $90K this week," Jelle noted, suggesting a potential bullish turn in 2025.  

The broader macroeconomic environment also adds pressure.

The Federal Reserve’s recent hawkish stance, with minimal chances of interest rate cuts continuing into 2025, has impacted global liquidity.

The CME Group’s FedWatch Tool places only an 8.6% probability of a rate cut at the next Federal Open Market Committee meeting.  

As traders brace for further declines, analysts point to $85,000 as a key psychological support level.

With uncertain macroeconomic conditions and dwindling liquidity, Bitcoin’s short-term outlook remains cautious.

At the time of reporting, the price of Bitcoin (BTC) was $94,403.42.