Bitcoin price prediction: BTC recovery faces resistance as traders trim leveraged positions

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Bitcoin price prediction

Highlights

Bitcoin price drops 7.35% to $83,800 before partial recovery into Tuesday’s session.

Exchange netflows show $72.88 million withdrawals, which means investors shifting towards self-custody preference.

20 and 50 EMA bearish crossover confirms near-term resistance zone around $88,000–$90,000 range.

The heavy liquidation phase provided the backdrop for a modest rebound later in the session. Buyers staged a 2.8% recovery into the close at $86,000, although the rebound did not change the broader structure shaped by the earlier selloff. Price action entering Tuesday extended that recovery further, as Bitcoin advanced 1.4% from the previous close during the European session to trade near $87,000. This movement shifted market focus to the quality of the rebound and whether the market could rebuild a stable base after such a heavy slide.

Bitcoin price dynamics (Nov - Dec 2025). Source: Tradingview

Volume trends suggested that the rebound lacked strong conviction. The 4-hour chart showed that volumes had declined throughout the recovery from the prior day's low. This contrasted sharply against the heavy activity recorded during the selloff and hinted that buyers were not stepping in aggressively. Instead, liquidity thinned as price drifted higher, a pattern that often results in unstable rallies that struggle to break key resistances.

Bitcoin netflows show investor withdrawal trend signals short-term accumulation

The flow data from Coinglass provided additional context for the shift in behavior. There were clear spikes in positive netflows as Bitcoin dropped from above $90,000 to near $85,000, meaning traders moved coins to exchanges during the correction. That pattern typically indicates preparation for selling pressure. However, conditions changed on Tuesday. Large negative netflow readings near minus 72.88 million highlighted that more Bitcoin had been withdrawn from exchanges. This behavior usually aligns with reduced sell pressure and signals that investors prefer self-custody during periods of uncertainty, a pattern that can support short-term accumulation.

However, technical conditions still presented challenges. A bearish crossover between the 20 and 50 exponential moving averages developed near the $90,000 psychological level during the selloff. The 20 EMA now sits near $88,000, acting as immediate resistance. The daily relative strength index continues to sit in bearish territory, confirming that short-term momentum favors sellers. This combination suggests that Bitcoin may struggle to build a decisive recovery unless price clears the $88,000 to $90,000 region.

A failure to stabilize above near-term support may expose the $83,800 low again. Any breakdown below that level could invite fresh selling pressure. A sustained breakout above $90,000 would instead indicate that buyers have absorbed the shock from the selloff and are prepared to drive a more meaningful recovery phase.

In recent analysis, we discussed how Bitcoin fell to $85,600 as over $500 million in liquidations confirmed renewed market pressure. Rising exchange inflows and falling outflows showed holders distributing into weak spot demand.

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