Bitcoin (BTC) price has once again moved lower, extending its pullback by nearly 9% over the past six days. BTC dropped from the $95,000 region to around $86,000, dragging much of the broader crypto market down with it. While the decline looks sharp on lower timeframes, the real question remains: what caused Bitcoin to lose momentum so quickly?
Macro Expectations Shift, Pressuring Bitcoin Price
The recent Bitcoin price weakness did not emerge in isolation. Analyst CyrilXBT points to a change in macroeconomic expectations as the first major trigger. Although the Federal Reserve delivered a rate cut, its guidance on future easing turned noticeably more cautious.
Markets had previously priced in faster and deeper rate cuts in 2026, but that optimism has faded. As liquidity expectations cooled, risk appetite softened. While equity markets avoided a major selloff, assets that thrive on loose monetary conditions—such as Bitcoin—reacted more sharply. Historically, BTC price tends to respond early when liquidity assumptions begin to tighten.
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AI Stock Selloff Added Extra Pressure
External market weakness further amplified the move. A selloff in AI-related equities following disappointing earnings weighed heavily on sentiment. According to CyrilXBT, this mattered because Bitcoin mining narratives have increasingly overlapped with AI infrastructure themes over the past year.
As AI stocks declined, shares of BTC miners followed suit, dragging crypto sentiment lower. At the same time, crypto-linked equities like Coinbase and MicroStrategy posted steeper losses and higher volatility than the broader market. This pattern is familiar—equity markets often lead risk-off moves, with spot crypto prices following shortly after.
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No Panic Selling, But Caution Dominates
Despite the speed of the drop, the decline has remained relatively controlled. There has been no wave of forced liquidations or major liquidity breakdowns, suggesting the selling pressure is driven more by repositioning and uncertainty than outright panic.
This distinction is important. Bitcoin price behavior during macro-driven hesitation tends to differ significantly from true structural breakdowns. For now, the market appears to be in a wait-and-see mode, rather than rushing for the exits.
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Bitcoin Price Enters A Critical Decision Zone
Graph Source: TradingView
Technical levels now play a key role. BTC slipped below the 0.618 Fibonacci retracement near $88,035, falling into a lower support range. Analyst Cihan Türkmen notes that Bitcoin is currently hovering near a final short-term support zone around $85,800.
The chart shows repeated failures to reclaim higher resistance, followed by a clean breakdown. Downward-sloping moving averages continue to reinforce bearish pressure. Price action is now compressed between support near $85,000 and resistance around $88,000, forming a tight decision zone.
What Comes Next For BTC Price?
Cihan Türkmen outlines three potential scenarios:
- Bullish rebound: A bounce from current levels could push Bitcoin back toward $88,000, with a possible extension to $92,800, where the 200-period EMA resides.
- Sideways consolidation: Continued movement between $85,000 and $88,000 may signal consolidation, with volatility building beneath the surface.
- Bearish breakdown: A decisive drop below $85,000 could expose downside targets at $83,000, followed by $80,400 if selling pressure accelerates.
For now, Bitcoin price sits at a pivotal point. The next move from this zone is likely to set the tone for BTC’s short-term direction.
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Conclusion
Bitcoin price remains under pressure after slipping nearly 9% in less than a week, driven largely by shifting macro expectations and weakness in AI-linked equities. While the move lower has been sharp, the absence of panic selling or forced liquidations suggests this is a period of repositioning rather than structural breakdown.
Technically, BTC price has entered a critical decision zone between $85,000 and $88,000. A strong rebound could restore upside momentum, while continued consolidation may build volatility ahead of a larger move. However, a breakdown below key support could expose deeper downside levels. For now, Bitcoin sits at a crossroads, and the next decisive move is likely to shape short-term market direction.
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Frequently Asked Questions (FAQs)
Why is Bitcoin price falling today?
Bitcoin price is falling due to cautious Federal Reserve guidance, fading rate cut expectations, and weakness in AI-linked and crypto-related equities.
Did the Federal Reserve rate cut help Bitcoin?
While the Fed cut rates, markets expected faster future easing. When those expectations faded, liquidity-driven assets like Bitcoin declined.
Is the current Bitcoin dip caused by panic selling?
No. There are no major liquidations or liquidity breakdowns. The move appears driven by uncertainty and repositioning.
What are the key Bitcoin support and resistance levels?
Support sits near $85,000, while resistance is around $88,000. A breakdown could lead to $83,000–$80,400.
Can Bitcoin price recover from this dip?
Yes. A rebound could push BTC toward $88,000 and possibly $92,800 near the 200-period EMA.
