Bitcoin News Today: Bitcoin's Rebound Fails to Ease Crypto's Liquidity Crunch

Bitcoin's recent bounce from $80,000 has not managed to spark a wider crypto rally, as analysts highlight mounting structural concerns amid ongoing liquidity challenges and macroeconomic pressures. After briefly touching $94,000 before pulling back, Bitcoin is now confined to a narrowing range between $89,188 and $94,212, with significant resistance at $96,000 and

. Should this support zone fail, could be vulnerable to a drop toward $69,000–$72,000, which aligns with Fibonacci retracement points and the consolidation areas seen in 2024 .

The overall cryptocurrency market has echoed Bitcoin's weakness, with total market value falling below $3 trillion—a 30% decrease from its October high of $4.2 trillion

. In recent days, traders have faced over $950 million in liquidations as open interest contracts shrink due to thin liquidity and forced selling . Bitcoin's dominance has slipped under 49%, indicating a shift of capital into alternative coins such as (HBAR), Hyperliquid (HYPE), and SPX6900, all of which have seen short-term technical rallies . Still, experts warn that altcoin strength during periods of Bitcoin weakness often precedes renewed declines, 2019–2022.

Institutional flows reveal a growing divide in market outlook. While spot Bitcoin ETFs have seen $1.38 billion withdrawn over the past ten days,

by 42,000 BTC, highlighting the contrast between short-term speculators and long-term investors. Ark Invest, led by Cathie Wood, contributed to this narrative by acquiring $32.2 million in CoreWeave shares and $1.08 million in ARK 21Shares Bitcoin ETF (ARKB) during the recent downturn, in both AI infrastructure and cryptocurrency. At the same time, approximately 42,000 BTC (about $4 billion) this month, with ETFs experiencing three straight weeks of outflows.

Technical signals continue to point to bearish momentum. (RSI) is hovering near 38, and the MACD histogram indicates ongoing selling activity. A broadening wedge pattern—a bearish continuation indicator—has formed, suggesting increased volatility ahead. the $94,000–$96,000 range, further declines toward $83,000 could set off a wave of stop-loss triggers.

Analysts foresee a possible bottom between $40,700 and $47,500 by late 2026,

a potential recovery to $150,000 in 2027 if macroeconomic factors turn favorable. However, immediate threats remain, such as the Federal Reserve's postponed rate cuts and China's export controls, which could worsen liquidity issues .

As the market weathers this turbulent period, traders are staying cautious. "We may be nearing a local bottom," said Satraj Bambra, CEO of Rails, a hybrid crypto exchange. "But unless buyers act decisively, the market could fall further. Conditions remain fragile"

.