Bitcoin Struggles Near $87K as Institutional Demand Cools

Bitcoin's price has once again faced resistance near the $87,000 mark, slipping back toward $85,500 on October 6, 2026. This rejection leaves buyers defending a critical support zone, with the cryptocurrency now trading roughly 32% below its record high of $126,080, achieved exactly one year earlier.

The latest pullback follows another failed attempt to surpass $87,000, an area that has seen repeated rejections since late September. Analyst Ali Martinez highlights that approximately 1.59 million BTC changed hands between $83,300 and $84,600, creating significant support. Meanwhile, the key resistance level remains at $86,700, which buyers need to clear for a potential breakout.

Institutional demand for Bitcoin has shown signs of cooling, with U.S. spot Bitcoin ETFs recording $89.9 million in net outflows on October 5. This reversal follows two consecutive sessions of net inflows, raising questions about the sustainability of recent rallies. Despite this, Bitcoin's weekly indicators remain constructive, with the Relative Strength Index (RSI) near 64, suggesting positive momentum without being overbought.

Traders are closely watching the $85,000 level, which has acted as both support and resistance. Analyst Daan Crypto Trades notes that a breakout from the current range could lead to stronger price movements. Additionally, large Bitcoin holders have been accumulating, adding over 14,335 BTC since October 1, valued at approximately $1.22 billion, according to Ali Martinez.