Bitcoin Slides Back Below $90K — Analyst Eyes $84K–$86K as Potential Local Bottom

After a brief outperformance on Tuesday, bitcoin has resumed its decline, with some analysts identifying $84,000–$86,000 as a possible local bottom.

Tuesday’s rally was notable because BTC posted gains while U.S. stocks pulled back—a rare divergence in recent months, as cryptocurrencies have largely lagged major indices hitting record highs. That brief reprieve, however, vanished within 24 hours. Bitcoin fell roughly 4%, dipping below $90,000, while ether ETH$2,834.89 lost 6.5% to trade under $3,000.

Crypto-related equities reflected similar weakness. Bitcoin-focused treasury firm MicroStrategy (MSTR) dropped over 8% to a one-year low. Other firms, including stablecoin issuer Circle (CRCL), ether treasury BitMine (BMNR), and miners Bitfarms (BITF) and Hive Digital (HIVE), also posted declines. By contrast, the Nasdaq remained modestly higher, up 0.2% shortly after midday on the U.S. East Coast.

Investor caution remains elevated following BTC’s early October record highs. The Crypto Fear & Greed Index continues to hover in “Extreme Fear” territory, signaling lingering market anxiety.

Vetle Lunde, head of research at K33, highlighted that the current drawdown—nearly 30% over 43 days—ranks among the most severe compared to seven extended corrections lasting over 50 days since March 2017.

Outflows from U.S.-listed spot BTC ETFs have added to selling pressure. According to Farside Investors, investors have withdrawn nearly $2.3 billion across five consecutive sessions.

“BTC has swept below the average cost basis of U.S. BTC ETFs,” Lunde said. “If this drawdown follows patterns from the two deepest corrections over the past two years, a bottom may form between $84,000 and $86,000. Otherwise, we could revisit the April low and MicroStrategy’s average entry of $74,433 in the next leg down.”