Bitcoin Decline Hits $85K Amid Trendline Rejection, Exchange Outflows Signal Potential Recovery

• Bitcoin faces ongoing resistance at the descending trendline on the 12-hour chart, leading to renewed selling below $90,000.

• Negative netflows on Binance persist, with more BTC withdrawn than deposited, suggesting reduced selling pressure from spot markets.

• On-chain metrics reveal accumulation patterns similar to past corrections, where long-term holders positioned during price dips, historically leading to rebounds.

Bitcoin price slips to $85K amid trendline rejection, but exchange outflows signal long-term holder confidence. Discover key on-chain insights and technical analysis for December 2025 trends. Stay informed on BTC recovery potential.

What is causing Bitcoin’s current price decline to $85,000?

Bitcoin’s price decline to $85,000 stems from repeated rejections at a multi-month descending trendline, as observed on the 12-hour chart. This technical resistance has triggered selling pressure, pushing BTC back into a lower consolidation range after failing to break above $90,000. While momentum indicators remain fragile, on-chain data suggests this dip may not indicate widespread distribution but rather short-term adjustments.

How are exchange outflows influencing Bitcoin’s market dynamics?

Exchange outflows, particularly from major platforms like Binance, have intensified during the recent sell-off. Data from CryptoQuant highlights consistent negative netflows in December 2025, with spikes of 2,000 to 4,000 BTC withdrawn on multiple occasions. This movement to cold storage reduces available supply on exchanges, typically easing spot selling pressure. In past cycles, such patterns preceded price recoveries as long-term holders accumulated during corrections. For instance, similar outflows in previous bearish phases correlated with subsequent 20-30% rebounds within weeks, according to historical on-chain analysis. Experts note that this behavior reflects confidence in Bitcoin’s fundamentals, even as derivatives markets amplify volatility. The current divergence between technical weakness and positive on-chain signals creates a nuanced environment, where short-term traders face uncertainty but mid-term positioning favors bulls.

Source: TradingView

Bitcoin’s 12-hour chart illustrates this fragility, showing multiple tests of the descending trendline throughout December. Each rejection has led to bearish breakouts from rising wedge patterns, underscoring a broader downtrend. The immediate support at $84,000 to $86,000 now serves as a critical level; a break below could accelerate declines, while holding might allow for consolidation. Momentum oscillators, such as the RSI, hover in neutral territory, failing to signal oversold conditions that could prompt a quick reversal. This setup places short-term control with sellers, but watchful eyes remain on volume, which has decreased during recent drops, hinting at waning bearish conviction.

Broader market factors contribute to this pressure. Institutional inflows into spot ETFs have slowed slightly, per reports from financial analysts, allowing derivatives-driven liquidations to dominate. However, Bitcoin’s hash rate remains robust, indicating miner confidence in network security and long-term value. Regulatory developments, including ongoing discussions in major economies, add to uncertainty, though no immediate threats have materialized.

Bitcoin rejected again at the downtrend — momentum remains fragile

The technical picture for Bitcoin reinforces ongoing challenges. Over the past month, BTC has approached the descending trendline several times, only to face firm resistance. The most recent attempt near $90,000 resulted in a sharp pullback, returning the price to the $85,000 region by Thursday, December 18, 2025. This pattern of rejections confirms sellers’ dominance in the short term, with the asset now trading within a tighter consolidation band.

Chart analysis reveals bearish implications from these formations. Rising wedges, often resolved downward, have broken out negatively, aligning with the multi-month downtrend. Trading volume during these moves has been moderate, suggesting the decline is more trend-following than panic-driven. Key support zones at $84,000–$86,000 are under scrutiny; defending this area could stabilize prices, but failure might target lower levels around $80,000.

Source: CryptoQuant

Large BTC outflows resume on Binance despite falling prices

Contrasting the price action, on-chain metrics paint a picture of accumulation. CryptoQuant’s data for Binance exchange netflows in December 2025 shows persistent negative balances, with more Bitcoin leaving than entering the platform. This trend has held steady even as prices fell, pointing to strategic withdrawals by investors.

Significant spikes in outflows—ranging from 2,000 to 4,000 BTC—occurred during key price drops, intensifying as BTC breached support levels. This mirrors historical patterns where long-term holders capitalized on corrections to build positions. By moving assets to private wallets or cold storage, these investors signal reduced intent to sell, thereby tightening overall supply.

Analysts from on-chain research firms emphasize that such dynamics often mitigate downside risks. In similar periods, exchange outflows preceded supply squeezes that fueled rallies. For Bitcoin, this could mean the current correction is largely influenced by leveraged trading in derivatives rather than fundamental spot selling. Wallet cohort data further supports this, showing increased holdings among addresses dormant for over a year, a hallmark of HODLing behavior.

What this divergence implies

The split between technical rejections and bullish on-chain flows creates mixed signals for Bitcoin’s trajectory. Short-term, the price remains at risk below the descending trendline, with failure to reclaim $90,000 potentially extending the downtrend. Mid-term, however, sustained outflows indicate supply dynamics favoring accumulation, historically leading to stronger rebounds once sentiment shifts.

If this pattern continues, Bitcoin could establish a base for reversal. Broader adoption metrics, including growing DeFi integrations and institutional treasury allocations, bolster this outlook. Monitoring netflows alongside technical breaks will be essential for gauging the next move.

Frequently Asked Questions

What are Bitcoin exchange netflows and why do they matter for price analysis?

Bitcoin exchange netflows measure the difference between BTC deposits and withdrawals on platforms like Binance. Negative netflows, as seen in December 2025 data from CryptoQuant, indicate outflows to secure storage, reducing selling pressure. This often signals investor confidence and precedes price recoveries, providing a counterbalance to short-term technical weakness.

Is Bitcoin’s descending trendline rejection a sign of a major bull run ending?

No, the descending trendline rejection on Bitcoin’s 12-hour chart reflects short-term fragility amid broader market adjustments. Combined with positive on-chain outflows, it suggests a temporary correction rather than the end of upward momentum. Historical precedents show such phases resolving into consolidation before resuming gains, especially with tightening supply.

Key Takeaways

• Technical Rejection Persists: Bitcoin’s repeated failures at the descending trendline keep short-term momentum bearish, with $84,000–$86,000 as key support.
• On-Chain Accumulation: Negative netflows from Binance highlight long-term holder activity, mirroring past dips that led to 20-30% rebounds.
• Divergent Signals: Watch for trendline breaks or outflow continuation to confirm reversal potential; position accordingly for mid-term recovery.

Conclusion

In summary, Bitcoin’s price decline to $85,000 driven by descending trendline rejections contrasts with robust exchange outflows, pointing to underlying strength in holder behavior. Data from CryptoQuant underscores accumulation amid corrections, a pattern that has historically supported recoveries. As December 2025 progresses, stabilizing sentiment could pave the way for Bitcoin to challenge higher levels—investors should monitor on-chain metrics closely for emerging opportunities in this evolving market.