🕒 Posted on: 12/1/2025 7:30:27 PM UTC

Analysts Warn of Bitcoin Pullback to $80K as December Trading Begins

A sharp downturn in Bitcoin and major altcoins at the start of the month has analysts eyeing key support levels, with some warning of a deeper correction ahead.

The cryptocurrency market opened December under significant selling pressure, casting a shadow over the final month of the year. Bitcoin (BTC) led the decline, failing to sustain momentum above crucial resistance levels and prompting several analysts to forecast a potential pullback toward the $80,000 mark. This bearish sentiment spilled over into the altcoin market, with many major cryptocurrencies threatening to break below their immediate support zones. The downturn occurs despite a notable resurgence in institutional interest, as crypto exchange-traded products snapped a four-week outflow streak with substantial inflows. As traders navigate this pivotal period, technical analysis charts provide a roadmap of critical levels that could determine the market's trajectory in the coming weeks.

Bitcoin's Rocky Start to December

Bitcoin began the new month on a weak note, with its price action suggesting persistent bearish dominance. After failing to rise above the 20-day Exponential Moving Average (EMA), positioned near $91,999, in preceding days, BTC turned down sharply on Monday. This failure at a key dynamic resistance level indicates that sellers are actively defending higher prices.

According to the provided technical analysis, the immediate concern for bulls is a daily close below the $84,000 level. Such a breakdown could trigger a move toward the $80,600 support. Analysts are closely watching the broad zone between $80,600 and $73,777, where buyers are expected to mount an aggressive defense. Veteran trader Peter Brandt contributed to the cautious outlook, noting on social media platform X that BTC's chart structure shows potential support in a wide range from sub-$70,000 to the mid-$40,000 zone. A breach below the $73,777 support could lead to intensified selling, with the analysis pointing to a risk of a decline toward $54,000.

Altcoins Follow Suit, Testing Critical Supports

The selling pressure was not confined to Bitcoin. The top altcoins by market capitalization mirrored BTC's weakness, turning down from their respective overhead resistances and testing key support levels.

Ether (ETH) turned down from its 20-day EMA at $3,052, signaling continued negative sentiment. The bears' next target is a break below $2,623, which could initiate a downward leg toward $2,400 and potentially $2,111.
XRP (XRP) faced rejection at its 20-day EMA ($2.18) and now risks a drop to the support line of its descending channel pattern. A break below this channel support could see XRP fall to $1.61.
BNB (BNB) saw its recovery attempt falter at the 20-day EMA ($894). Sellers are now attempting to push the price below the November 21 low of $790, which could resume a downtrend toward $730.
Solana (SOL) turned down from its 20-day EMA ($140) and is threatening the $126 support. A sustained move below this level could lead to a descent toward $110 and then $95.
Dogecoin (DOGE), Cardano (ADA), and Bitcoin Cash (BCH) all exhibited similar patterns, with failures at moving average resistance increasing the risk of breaks below nearby supports at $0.13, $0.38, and the 50-day SMA ($514), respectively.

This synchronized weakness across major assets underscores a broad-based risk-off sentiment in the crypto market as December trading commences.

Historical Parallels and Macro Context

Adding a layer of historical context to the current technical setup, network economist Timothy Peterson offered a comparative analysis on X. According to his data, Bitcoin's price action in the second half of 2025 bears similarities to its trajectory in the second half of 2022. If this historical pattern repeats, it suggests that BTC may not experience a sharp rally until well into the first quarter of next year. This perspective encourages a patient, longer-term view amid short-term volatility.

The traditional financial backdrop provides mixed signals. The S&P 500 Index (SPX) showed strength, breaking above its moving averages and a resistance line. However, it now faces significant selling near the 6,920 level. A rejection here could lead to consolidation between 6,550 and 6,920. Conversely, the US Dollar Index (DXY) turned down from resistance at 100.50 and broke below its 20-day EMA (99.57). Its next move hinges on whether it holds or breaks below the 50-day Simple Moving Average (SMA) at 99.05. These macro movements are closely watched by crypto traders for correlations that can influence capital flows.

A Silver Lining: Institutional Inflows Return

Amidst the price declines, one fundamentally positive development emerged from recent CoinShares data. Crypto exchange-traded products (ETPs) attracted $1.07 billion in net inflows last week, breaking a four-week streak of outflows. This indicates that institutional and sophisticated investors viewed lower price levels as an attractive entry point, demonstrating underlying demand.

This divergence between short-term price action and medium-term investment flows is a critical dynamic. It suggests that while trader sentiment on derivatives markets may be fearful or uncertain, there is tangible buying interest in spot markets through regulated vehicles. This demand could help establish a firmer floor beneath any further corrections.

Strategic Outlook: Key Levels to Watch

As December unfolds, market participants should monitor several key technical levels that will likely dictate short-term direction.

For Bitcoin, the battle lines are clearly drawn. On the downside, holds at $84,000 and subsequently $80,600 are crucial to prevent a deeper slide toward $73,777. On the upside, a reclaim of the 20-day EMA near $92k is necessary to signal any shift in momentum toward strength, with a further rally toward the 50-day SMA ($101,438) possible thereafter.

For the altcoin market, holding immediate supports is paramount to avoid cascading sell-offs. Levels like ETH's $2,623, SOL's $126, and ADA's $0.38 represent make-or-break zones for their respective trends. A recovery across the board would likely require these assets to push back above their 20-day EMAs.

The broader takeaway is that the cryptocurrency market is undergoing a significant test of investor conviction after its recent run-up. The combination of technical breakdowns, cautious analyst projections based on historical patterns, and resilient institutional inflows paints a complex picture. While near-term volatility and further downside toward mentioned targets are distinct possibilities—with some analysts even referencing lows like $50k—the returning institutional capital offers a counter-narrative of accumulation.

Traders should prepare for potential volatility around these identified support and resistance levels. A prudent strategy involves watching for confirmations—daily or weekly closes below supports or above moving averages—rather than reacting to intraday breaks. The interplay between crypto-specific technicals and movements in traditional indices like the S&P 500 and DXY will also be instrumental in shaping market sentiment as the year draws to a close.

This article is based solely on provided technical analysis and referenced analyst commentary from social media platforms. It does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.