Bitcoin Pulls Back from $98,000 to $86,100: Cooling Momentum and Key Support Analysis

Bitcoin Surges to $98,000: Uptrend Drivers and Market Context

Chart: https://www.gate.com/trade/BTC_USDT

In early 2026, Bitcoin briefly hit $98,000, coming close to the highly anticipated $100,000 level. Several core factors fueled this rally:

• Ongoing inflows from Bitcoin ETFs
• Rising market risk appetite
• Notable increases in on-chain active addresses and transaction volume
• Technical breakout that attracted momentum traders

As Bitcoin approached this major psychological threshold, profit-taking became increasingly evident across the market.

Market Reversal: BTC Pulls Back to $86,100

After failing to sustain its highs, BTC saw a rapid decline, dropping to $86,100 over the past 24 hours—a new low for this correction cycle.

This level closely aligns with a previously watched short-term support zone, signaling that market momentum has shifted from “strongly bullish” to “neutral-to-weak.”

Pullback Drivers: Liquidations, Weak Volume, and Macro Risks

Bitcoin’s drop from $98,000 to $86,100 was not driven by a single factor, but resulted from a combination of several pressure points forming a multi-layered correction.

1. Liquidation Cascade Exacerbated the Selloff

The $94,000–$90,000 range saw the highest concentration of leveraged long positions in recent days. As prices fell, a chain reaction of liquidations accelerated the decline.

2. Low Trading Volume Weakened the Rally

As Bitcoin pushed toward $98,000, trading volume failed to expand, signaling insufficient bullish momentum and a lack of fresh capital entering the market.

3. Macro Headwinds Sparked Risk-Off Sentiment

Recent hawkish shifts in US policy put short-term pressure on global risk assets, naturally impacting Bitcoin’s price to the downside.

Technical Structure: Trendlines, Volume, and RSI

From a technical standpoint, the current correction shows clear structural signals:

Trendline: Break Below Short-Term Uptrend Channel

BTC has fallen below the uptrend line established since $82,000, undermining the short-term bullish structure.

RSI: Retreat from Overbought to Neutral

The RSI, which exceeded 70 at the peak, has now dropped to the 50–55 range, highlighting a clear loss of upside momentum.

Volume: Elevated Selling Volume Intensifies Pressure

Trading volume during the decline outpaced that of the prior rally, indicating that sellers are firmly in control.

Three Key Support Levels: $86,000, $84,000, $80,000

BTC is now approaching the first critical support level:

1. $86,000 (Current Support)

Bitcoin is consolidating in this range. If it stabilizes here, a short-term rebound toward $90,000 is possible.

2. $84,000 (Strong Support)

If $86,000 fails, $84,000 will be the next key level to watch.

3. $80,000 (Core Psychological Level)

If $84,000 is breached, the market is likely to test the critical $80,000 psychological threshold.

Market Outlook: Rebound, Range-Bound, or Deeper Correction?

BTC could follow one of three main scenarios in the near term:

Range-Bound Consolidation (Most Likely)

Bitcoin may trade sideways between $86,000 and $88,000, forming a new price-volume equilibrium.

Breaks $86,000, Weak US Equities → Tests $84,000 or $80,000

Continued macro headwinds would raise the risk of further downside.

Stabilization and Rebound: Retesting $90,000–$95,000

This outcome depends on another wave of strong ETF inflows.

Investor Strategy Recommendations (Long-Term / Short-Term)

Long-Term Investors

• Monitor the $80,000–$86,000 range
• Avoid emotional trading decisions
• No need for holders to panic sell

Short-Term Traders

• Set strict stop-loss orders
• Avoid heavy positions in high-volatility zones
• Consider swing trading on rebounds toward $89,000–$90,000