On October 6th, the price of Bitcoin fell back to around $85,500, after previously encountering resistance near $87,000 again. With the market now about 32% lower than its historical high set a year ago, buyers are holding onto a dense support area.

After reaching a record high of $126,080 in 2025, Bitcoin is now still approximately 32% lower.

US spot Bitcoin ETF saw a net outflow of $89.9 million on Monday, reversing the net inflow from the previous two trading days.

Bitcoin has repeatedly encountered resistance around $87,000, and the main hurdle that buyers need to overcome is currently at $86,700.

Ali Martinez indicates that there were 1.59 million BTC transactions between $83,300 and $84,600, forming an important support level.

The weekly chart RSI is approaching 64, still below the overbought area, while the price is nearing the upper band of the Bollinger Bands.

This decline occurred after Bitcoin made another attempt to break through $87,000. Since late September, cryptocurrencies have tested this area several times, but have not been able to achieve a sustained breakthrough, making the narrow range between the support level of $83,000 and the resistance level of $86,000 the main technical battleground.

Bitcoin price continues to face selling pressure around $87,000

Over the past two weeks, Bitcoin has been fluctuating mostly between $83,000 and $87,000. The seven-day range shown by CoinGecko ranges from $82,911 to $87,086, indicating that buyers and sellers have repeatedly taken control at both ends of the same price range.

Cryptography analyst Daan Crypto Trades indicates that the $85,000 range has repeatedly served as both support and resistance. He pointed out that there is a lower set of highs above $87,000, and there is another liquidity area around $83,000, suggesting that a breakout in either direction could trigger a stronger trend.

Ali Martinez further narrowed down the scope of the structure. In his analysis on October 6th, he stated that BTC established support between $83,300 and $84,600, and Glassnode URPD data showed that approximately 1.59 million BTC were traded within that range.

Martinez pointed out that the level that buyers need to break through is $86,700. His analysis shows that there is no similarly concentrated supply above that level until around $105,000. He stated that if a breakthrough is successful, $100,000 could re-enter the market's focus, but this is still just a scenario under specific conditions proposed by analysts and not a price prediction guaranteed by on-chain data.

The same resistance zone also appears in recent institutional analyses. As previously reported by crypto.news, analysts from Bitfinex regarded $86,500 as a key obstacle for Bitcoin after the token briefly rose to $87,220 on October 2nd. Their analysis suggests that if buying can continue above that level, it will strengthen the rebound momentum.

ETF Amidst the demand cooling down, Bitcoin's support at $85,000 is being put to the test

Institutional capital flows weakened at the beginning of this week.

SoSoValue data shows that US spot Bitcoin ETF recorded a net outflow of $89.9 million on October 5th, whereas in the previous two trading days of October, it attracted a total net inflow of approximately $293 million. On Monday, the total trading volume of these funds reached $2.18 billion.

The reason why the demand ETF remains important is that recent rebounds often struggle to sustain themselves after the buying momentum of funds slows down. crypto.news Previous reports indicated that for Bitcoin to break through to the $90,000 range in October, stronger spot demand is still needed.

The anniversary node at a record high of BTC also provides another reference point. The current price is about 32% lower than $126,080, which is significantly smaller than the peak-to-trough drawdowns that occurred after previous cycle highs for Bitcoin. Research records from BlackRock iShares show that after the 2014 high, there was a drawdown of about 80%, after the 2017 high, a drawdown of 83%, and after the 2021 high, a drawdown of 77%.

These numbers describe the historical pullbacks that have already occurred, and they do not indicate how far the current cycle will ultimately fall back.

The weekly indicators still favor the buyers; the structure is still acceptable when it is below $89,000.

Despite encountering resistance around $87,000 several times, Bitcoin's weekly indicators remain positive.

Bollinger Bands indicate that the midline on the weekly chart is around $71,035, and the upper band is around $89,065. Bitcoin is currently trading in the upper half of this channel. Therefore, the price is still above the midline but is gradually approaching the upper band; further increases will bring BTC into a region that is usually associated with stronger momentum and a higher risk of consolidation.

The weekly line RSI is around 63.95, with a moving average of about 50.96. This indicator is still below the traditional 70 overbought level, indicating that momentum remains positive, but there are no signs of excessive stretching readings that are usually associated with overbought markets on the weekly chart.

Trader Lennaert Snyder indicates that he is observing whether BTC will be able to hold around $84,900 before attempting to break through the $87,200 high. If buyers fail to hold this level, his short-term target will be $84,400, with $82,500 being an even lower level in his bearish scenario.

These targets still fall within the context of trading scenarios. According to the more mature on-chain range provided by Martinez, the first important support level is between $83,300 and $84,600, while $86,700 remains the current breakout point.

Martinez also indicates that since October 1st, large holders of BTC have increased their holdings by more than 14,335 BTC, which is valued at approximately $1.22 billion based on the prices he used in his analysis. He claims that the data comes from Santiment. The increase in holdings mentioned in the report supports his bullish perspective, but the activities of large holders alone cannot determine the next direction for BTC.

There is still uncertainty regarding Trump's proposed payment plan of $5,000.

Another bullish scenario circulating among crypto traders revolves around a proposal put forward by U.S. President Donald Trump: if the Republicans continue to control Congress after the mid-term elections on November 3rd, they will distribute $5,000 to American adults.

Reuters reported that, according to Trump's description, approximately 240 million American adults may qualify, with an estimated cost of nearly $1.2 trillion. Congress must approve this expenditure, and some Republican lawmakers have expressed concerns about inflation and the federal deficit.

Cryptography analyst Crypto Rover believes that even if only a small portion of such funds flows into digital assets, it could still generate a considerable demand for cryptocurrencies. Assuming a allocation ratio of 5% to 10%, and based on an estimated project scale of $1.2 trillion to $1.3 trillion, theoretically, this could result in an investment inflow of about $60 billion to $130 billion.

Reuters points out that federal spending is controlled by Congress, and most legislative actions require 60 votes from the Senate, unless lawmakers use budget procedures that allow for passage under different rules. The elections on November 3 will determine whether the Republicans will maintain their current control over both chambers of Congress.

Before that, Bitcoin traders will also face another scheduled U.S. policy event. The next meeting of the Federal Reserve is scheduled for October 27th to 28th. Recent analysis by crypto.news indicates that Treasury yields, inflation expectations, and ETF demand remain factors that traders need to pay attention to within the current range of Bitcoin.

Disclosure: This article does not constitute investment advice. The content and materials contained herein are for educational purposes only.