Bitcoin has finally exited its unusually tight trading range, and the direction of the move has immediately shifted market sentiment. After days of compressed price action, $BTC lost the critical $90,000 support level ahead of the weekly close, ending a period of extreme low volatility. For experienced traders, this type of compression rarely resolves quietly. It often precedes a sharp expansion in volatility, and the latest breakdown suggests that downside risk is back on the table.
For most of the week, Bitcoin traded within a narrow band, repeatedly testing resistance while failing to attract strong follow-through buying. Each attempt to reclaim higher levels was met with selling pressure, signaling exhaustion on the bullish side. Once $90,000 gave way, the former support quickly flipped into resistance, reinforcing the idea that the market structure has shifted, at least in the short term. This breakdown marks a clear inflection point that traders can no longer ignore.
According to technical analyst Aksel Kibar, Bitcoin’s chart structure now presents two dominant scenarios. The first is a continuation lower, driven by what appears to be a bear flag formation on the daily timeframe. If this pattern plays out fully, BTC could see another leg down toward the $73,700 to $76,500 region, an area that previously acted as strong demand and may serve as a medium-term bottom. The second scenario requires a decisive reclaim of the $94,600 to $95,000 zone, which would invalidate the bearish setup and potentially open the door for a rapid push back toward $100,000.
Other traders have echoed the importance of the $90,000 level. Market participants noted that the range between $90,600 and $89,800 was heavily defended, making its loss technically significant. With that range now broken, price action is more vulnerable to acceleration if buyers fail to step in with conviction. In these environments, patience becomes critical, as false moves are common before a clear trend establishes itself.
On-chain data is adding another layer of caution. Analysts at CryptoQuant have pointed out that Bitcoin is displaying characteristics consistent with a broader bear-market phase. Simple moving averages are sloping downward and acting as dynamic resistance, while relief rallies are occurring on weak volume. At the same time, selling pressure has been more aggressive during downside moves, suggesting that larger participants may still be distributing risk.
More concerning for long-term bulls is the resurfacing of the $50,000 target in macro discussions. While this level is not an immediate forecast, it reflects a growing belief that Bitcoin may need a deeper reset before the next sustained upside cycle can begin. Analysts emphasize that such moves are often part of larger market rotations rather than signs of failure, but they require disciplined risk management from traders.
As Bitcoin trades below $90,000, the coming sessions will be crucial. Traders are watching for volume expansion, confirmation of either continuation or reversal, and where the weekly closes relative to former support. With December historically known for sharp moves, the current volatility expansion could define Bitcoin’s medium-term trend and set the tone for the months ahead.
