The cryptocurrency market is currently engulfed in uncertainty as Bitcoin experiences a notable decline, primarily attributed to significant selling by whale investors and diminishing technical momentum. Analysts are raising alarms that if Bitcoin cannot sustain its current higher-low trendline, it may see a further drop, potentially targeting the $87,000 mark.
This decline follows Bitcoin“s recent peak of $126,000 in August 2025, which was followed by a swift sell-off that impacted the wider crypto ecosystem. Large holders, known as whales, have been noticeably reducing their holdings in recent weeks, which has contributed to the mounting downward pressure on prices. On-chain data indicates that several early Bitcoin wallets have begun offloading assets, leading to an uptick in overall exchange inflows.
This pattern of whale activity typically indicates a shift from accumulation to distribution, often occurring when investors seek to realize profits after prolonged bullish trends. Consequently, Bitcoin has dipped below several critical technical levels, raising alarms among traders who worry that the market has yet to find a solid bottom.
Technical analyst TradingShot has pointed out that Bitcoin“s current price movements closely resemble a pattern observed earlier in the year. In January and February, Bitcoin fell below a crucial higher-low trendline, which initiated a sharp correction. Presently, after the flash crash on October 10, the cryptocurrency has been forming higher lows, indicating a bullish accumulation structure. However, the recent downturn has put this trendline under scrutiny.
TradingShot asserts that as long as Bitcoin remains above this support level, there is hope for recovery. However, a decisive break below this trendline could lead to a significant decline, potentially exceeding 30%. According to Fibonacci Extension analysis, if the current downtrend persists, a move to the 2.0 Fibonacci Extension level could see Bitcoin plummet to around $87,000, marking a 32% decline from its existing levels.
Such a drop would represent its lowest price point in four months and could significantly challenge investor confidence. This forecast aligns with other bearish indicators, including macroeconomic signals and ETF outflows. Recently, spot Bitcoin ETFs have experienced billions in redemptions, suggesting a cooling institutional demand following months of strong inflows.
Additionally, Bitcoin has performed poorly in October, closing the month in negative territory for the first time in seven years, breaking a long-standing trend of strong performances historically dubbed “Uptober.” When Bitcoin ends October with losses, November typically follows suit. The last time this occurred was in 2018, resulting in a more than 36% decline in November.
This cyclical trend has raised further concerns among traders that the current downturn may prolong through the year-end. The combination of whale selling and a weakening technical structure has left the market in a precarious position. Investor sentiment has turned cautious as volatility returns to the cryptocurrency space, with many now eyeing the critical $100,000 psychological support level. A breach below this threshold could ignite panic selling, especially among leveraged traders.
Nevertheless, long-term holders appear largely undeterred, emphasizing Bitcoin“s historical capacity to rebound from even significant downturns. Furthermore, ongoing macroeconomic factors continue to shape Bitcoin“s trajectory. Tight global liquidity, alongside uncertainty surrounding U.S. monetary policy and geopolitical risks, has prompted investors to adopt a more defensive posture across risk assets.
While the short-term outlook for Bitcoin may seem fragile, it has shown remarkable resilience following major corrections in the past. The cryptocurrency has weathered numerous 30–40% drawdowns during previous bull cycles, often bouncing back to reach new heights once selling pressure subsides. Currently, the focus remains on the higher-low trendline, which is crucial for determining the potential for recovery versus further decline.
If Bitcoin can successfully defend this trendline and regain strength above $110,000, confidence may quickly return to the market. Conversely, a confirmed breakdown might validate bearish projections, potentially driving the price down to the $87,000 level before the next accumulation phase begins. The recent weakness in Bitcoin has reignited discussions on whether the market is merely undergoing a short-term correction or if it is the onset of a more profound bearish trend.
