(MENAFN- The Rio Times) Bitcoin's slump into the mid-$80,000 range marks the deepest and most coordinated sell-off the market has seen since early 2022, a decline that has erased the optimism of the spring rally and exposed once again how fragile digital assets become when liquidity tightens.

After peaking above $126,000 in early October, Bitcoin has now plunged to roughly $86,000, placing it directly on top of the 20-month moving average - a level that historically functions as a structural checkpoint for long-term trends.

This time, though, the landing looks less like stabilization and more like the midpoint of a larger correction.

On the monthly chart, the current candle is a full-bodied red block with almost no lower wick, a sign that sellers remained in firm control throughout the fall.

Momentum indicators that should flatten during healthy pullbacks are instead bending sharply downward.



The RSI has rolled over from overheated territory, and the MACD histogram is weakening - early signals of a macro trend reversing rather than merely pausing.

Bitcoin has reached this moving average before, but usually during accumulation phases marked by slowing momentum, buyer defense and long lower shadows. None of those features are present today.
Bitcoin Slams Into Its Long-Term Trend Line as Prices Sink Into the Mid-$80Ks
Lower timeframes reinforce the message. The weekly chart shows a clean break of the 21-week EMA and the loss of every meaningful trendline that supported the bull leg through 2024 and early 2025.

Daily price action has turned outright aggressive: repeated failed bounces, lower highs, and accelerating lower lows.

The four-hour and one-hour charts - which reveal the market's heartbeat - show liquidation-style declines in stair-step patterns.



Every recovery attempt at $88,000, $89,000 and $90,000 was sold immediately, leaving Bitcoin pinned against the low end of its range with no visible bid.

This weakness is not isolated to charts. ETF flows have shifted decisively negative, with major bitcoin funds posting sustained outflows while speculative capital rotates toward higher-beta names such as Solana.

Market makers describe a shift from enthusiasm to caution, noting that forced unwinds in October triggered long-lasting damage to liquidity.

Large holders who absorbed early declines are no longer stepping in with the same confidence. The psychology looks less like conviction and more like a slow retreat.

Altcoins add little relief. Ethereum has struggled to hold the $3,000 area, XRP slipped below key momentum thresholds, and Litecoin's trend remains flat-to-negative.

Even strong performers such as Solana are no longer offsetting the broader downturn. High-volatility tokens have fared worse, tumbling sharply as risk appetite drains from the market.



The deeper issue is the narrative unwinding beneath the price. Bitcoin was sold globally as“digital gold,” a hedge against uncertainty and a store of value immune to political and economic turbulence.

Yet as global markets repriced risk, gold and government bonds rose while Bitcoin shed nearly 40% from its highs.

Investors seeking stability moved toward traditional safe assets, not crypto experiments. The divergence is difficult to ignore.

With Bitcoin now resting on its 20-month moving average, traders face a level that can act as a temporary shelf.

But given the strength of the downtrend and the uniform weakness across all timeframes, the support is unlikely to hold as a long-term bottom.

The next meaningful areas lie lower - first around $78,000, then near the $72,000 zone tied to earlier consolidation and long-term moving averages.

The market has reached a point where short-term volatility gives way to structural reassessment.

Bitcoin may have touched its next technical support, but the charts and flows suggest the descent into the mid-$80Ks is not the end of the story - only the beginning of a deeper reset.

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