Bitcoin Dips Below $90K: Is This the Bottom or More Pain Ahead?
Posted on December 14, 2025
As of today, Bitcoin (BTC) is trading around $90,000, with sources like CoinMarketCap and CoinDesk reporting prices between $90,000 and $90,200. After a volatile 2025 that saw BTC surge to all-time highs above $126,000 earlier in the year, the recent pullback has wiped out significant gains, leaving many holders wondering: Are we heading lower, or is this the bottom?
The Current Situation
Bitcoin has been under pressure throughout much of late 2025. After peaking in early October, the cryptocurrency has experienced a series of sharp corrections, briefly dipping below $90,000 multiple times in recent weeks. This decline has been exacerbated by broader market jitters, including concerns over an potential AI bubble bursting in tech stocks, which has dragged risk assets like BTC down with it. Bitcoin's increasing correlation with equities — now averaging around 0.5 with the S&P 500 this year — means it's no longer moving in isolation.
Other factors contributing to the downside include:
- Reduced expectations for aggressive Federal Reserve rate cuts.
- Outflows from Bitcoin ETFs after months of strong inflows.
- Liquidations of over-leveraged positions, amplifying sell-offs.
The market sentiment is cautious, with some analysts warning of a possible "crypto winter" if risk appetite continues to wane. Standard Chartered, which once forecasted $200,000 by year-end, has slashed its target to $100,000, citing reliance solely on ETF buying for future upside.
Reasons This Could Be the Bottom
Despite the gloom, there are solid arguments that $90,000 (or the recent lows around $87,000–$88,000) represents strong support and potentially the local bottom:
Historical Support Levels — On-chain data shows heavy investor accumulation around $80,000–$90,000, with multiple cost-basis metrics indicating conviction at these prices. Bitcoin has defended the $90K level multiple times recently, bouncing back quickly after dips.
Post-Halving Cycle Dynamics — We're still in the bullish phase of the cycle following the 2024 halving. Past cycles have seen corrections of 20–30% mid-rally, and this pullback fits that pattern after the run-up to $126K.
Institutional Interest Remains — Corporate treasuries (like MicroStrategy) continue holding, and ETF infrastructure is maturing. Any renewed inflows could provide quick upside.
Technical Indicators — BTC is consolidating in a symmetrical triangle on daily charts, often a precursor to breakouts. A close above $94,000–$95,000 could signal the correction's end.
Some forecasts still see upside by year-end, with targets around $100,000–$111,000 if sentiment flips.
Risks of Going Lower
On the flip side, the bearish case isn't without merit:
- Continued AI/tech stock weakness could pull BTC lower, potentially toward $80,000 or even $77,000 in a deeper correction.
- Weakening macro conditions, including sticky inflation or delayed rate cuts, might sustain risk-off sentiment.
- Year-end profit-taking and reduced liquidity could exacerbate volatility.
2025 has been a rollercoaster, and ending with a decline (the first annual drop since 2022) remains possible if broader markets falter.
Final Thoughts: A Healthy Correction or Something More?
In my view, this looks like a healthy correction in an ongoing bull market rather than the start of a prolonged bear phase. Bitcoin has repeatedly found buyers at these levels, and the fundamentals — limited supply, growing adoption, and institutional infrastructure — haven't changed. Dips below $90K have been short-lived, suggesting accumulation by stronger hands.
That said, crypto is volatile, and no one can predict short-term moves with certainty. If you're a long-term holder, this could be an opportunity to average in. For traders, watch key levels: a sustained break above $95,000 would invalidate the bearish thesis, while a drop below $87,000 might open the door to deeper pain.
What do you think — bottom in, or more downside ahead? Share your thoughts in the comments!
Disclaimer: This is not financial advice. Always do your own research and consider the risks involved in cryptocurrency investing.
Tags: bitcoin, btc, cryptocurrency, price-analysis, market-update