Bitcoin Dips Below $86k as ETF Outflows Test Rally

Bitcoin slipped below $86,000 on Tuesday, capping a three-week rally that had seen gains of more than 12%. The drop came amid a $90 million outflow from U.S. spot bitcoin ETFs, following last week’s significant inflow of $241.09 million. Despite the recent pullback, Bitcoin’s technical structure remains bullish, with key resistance levels at $87,599 and $90,000. Immediate support is positioned at $85,000, and a break below this could signal a deeper correction.

The cryptocurrency’s recovery has been supported by shifting interest-rate expectations and ETF demand. However, the weaker-than-expected U.S. employment report last Friday reduced the likelihood of a Federal Reserve rate hike in October, which could ease financial conditions and support risk assets like Bitcoin. For now, ETF activity remains a crucial factor in Bitcoin’s price movements, but its significance will depend on sustained buying pressure.

On the technical front, Bitcoin faces initial resistance at $87,599, the 50% retracement between the August 2024 low and the October 2025 record high. A successful close above this level could pave the way for a push toward $90,000. However, if resistance holds, downside targets include the $78,490 Fibonacci level and the 50-day SMA near $77,201. Immediate support lies at $85,000, and a daily close below this could weaken the bullish structure.

The daily chart shows Bitcoin above its key moving averages, reinforcing a near-term bullish bias. The Relative Strength Index stands near 67, indicating strong momentum, though the MACD histogram suggests upward pressure is slowing. The recovery remains intact, but clearing the $87,599 resistance would provide stronger confirmation that buyers can drive the price toward $90,000.