Bitcoin Faces Technical Pressure, Potential Drop to $40,000
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 25 2025- Technical Pressure Intensifies: Bitcoin's failure to break above $90,000 has led to a drop below the 50-week simple moving average, with historical data indicating an average decline of 54% after such breaches, potentially pushing prices toward the $40,000 range.
- Weak Market Sentiment: Despite ongoing inflows into spot Bitcoin ETFs, market sentiment remains in 'Extreme Fear', and risk appetite has not meaningfully recovered, which limits the potential for price rebounds.
- Liquidity Event: Bitcoin experienced a brief plunge to $24,111 on the Binance BTC/USD1 trading pair before quickly rebounding to $87,500, an event attributed to liquidity issues rather than fundamental changes, indicating the market is still in a bearish phase.
- Weak Demand Indicators: Increased activity from 7-10-year-old coins suggests a distribution phase or trend transition, indicating continued consolidation with a mild bearish bias unless demand indicators show improvement.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
