Bearish Momentum Returns: Bitcoin’s $87.5K Support at Risk, Says Analyst

Bitcoin’s recent relief rally appears to be losing steam as bearish momentum resurfaces, putting the cryptocurrency’s key $87.5K support level back in play, according to several market analysts monitoring price action this week.

After briefly recovering above the $90,000 zone, Bitcoin has struggled to attract sustained buying interest. Analysts note that weakening market momentum, declining trading volumes, and renewed selling pressure from both retail and institutional investors are contributing to the latest pullback.

“Bitcoin is once again drifting into a caution zone,” one analyst said, pointing to fading bullish sentiment across major exchanges. “If buyers fail to defend $87.5K, we could see price acceleration to the downside.”

Technical indicators reflect the shift: momentum oscillators are trending lower, RSI has slipped toward neutral territory, and derivatives data shows increasing short positioning. The combination suggests traders are preparing for potential volatility.

Macro factors are also adding weight. Global risk assets remain under pressure amid renewed concerns over inflation, interest rates, and geopolitical uncertainties—conditions that historically reduce appetite for high-risk assets like Bitcoin.

Even so, market strategists caution against assuming a deeper breakdown is guaranteed. The $87.5K zone has served as a reliable support level in recent weeks, with buyers stepping in aggressively during previous tests. A strong bounce from this region could reestablish short-term bullish structure.

For now, traders are watching Bitcoin’s reaction around $87.5K as a critical signal for the next major move. A decisive hold could pave the way for a retest of $90K, while a failure may open the door to sharper downside targets.