Bitcoin (BTC) is hovering near the $86,500 mark on Wednesday after rebounding from a sharp selloff earlier in the week, as easing forced liquidations and selective dip-buying helped the world’s largest cryptocurrency claw back losses. As crypto faces one of the biggest downward trends of the year, analysts say the recovery still looks fragile, as BTC struggles to reclaim the $88,500-$89,000 resistance zone decisively.

A CoinSwitch Markets Desk commentary says BTC bounced about 3% after Monday’s sharp selloff as heavy forced selling eased and traders stepped in near the $85-$86,000 support zone. “In the short term, the rebound looks more like a relief bounce than a full trend reversal. BTC needs stronger spot buying to sustain upside. Technically, resistance sits around $88K–$88.5K, while support lies near $87K.”

Riya Sehgal, research analyst at Delta Exchange, said Bitcoin is staying above $85,000 despite $358 million in ETF outflows, indicating investors are cautious but not exiting the market. “On-chain data shows wallets holding 100–1,000 BTC added about 54,000 BTC this week, the fastest accumulation since 2012. The contrast between ETF redemptions and steady accumulation points to a more mature market.”

Despite a 31% correction from October highs, Bitcoin’s volatility and its shifting correlation with gold show it still functions as a hedge in uncertain macro conditions.

Sehgal said technically, Bitcoin is consolidating below $88,500, with key resistance at $89,350, and a breakout above this could lift prices toward $90,000–$91,200, while support sits at $86,500–$85,000. “Ethereum faces resistance near $3,025–$3,050, with downside support around $2,875–$2,840. Both assets remain in a corrective phase,” she said.

Bitcoin prices have risen despite the employment data giving mixed signals, with stronger hiring but higher-than-expected unemployment. “Despite this uncertainty, Bitcoin exchange reserves sitting at record lows have supported the upside, giving bulls an edge. Attention now turns to the upcoming CPI data, which will shape expectations around a potential Fed rate cut,” says Akshat Siddhant, Lead Quant Analyst at Mudrex.

Blames broader market dynamics arising out of weaker jobs data and fading rate-cut expectations have particularly dampened the spirit of traders. Liquidity conditions are also stretched, forcing traders to balance institutional caution with retail optimism in a low-volume environment. "At the same time, Bitcoin ETFs play a growing role, yet they are not strong enough to drive breakout momentum on their own. What matters most now is whether buyers can step in to reverse this tone, because without renewed commitment from larger players, the market may remain range-bound and sensitive to macro shifts,” says Avinash Shekhar, Co-Founder & CEO, Pi42. 

Additionally, oil prices are increasing in the backdrop of the US announcing a blockade of oil tankers in and out of Venezuela, which is also mounting pressure on crypto, suggest experts. “Unless the prices cool down, the potential of inflation looms on the horizon. This means the conservative approach towards risk on assets such as equities and crypto will continue,” says Nischal Shetty, Founder, WazirX. 

 As the market awaits a breakthrough move in the macroeconomic space to ease the sentiment, liquidations continue with over $500 million crypto positions affected. JP Morgan’s tokenised asset fund and ARK Investment’s crypto purchase for equity provision are believed to be a green signal for long-term crypto adoption.

Looking ahead, the SEC’s faster crypto ETP approval process could pave the way for multiple new funds in 2026. If momentum holds, experts believe BTC could advance toward $90,000, with support gradually moving higher to the $86,000 zone.