Bitcoin (CRYPTO: BTC) has rebounded back above $90,000 on Tuesday after it touched the average cost basis of U.S. spot ETF holders.
ETF Investors Move Into Loss After $89,600 Support Breaks
According to Bloomberg, Bitcoin's temporary slide below $89,600 marks the first time U.S. spot ETF investors have gone underwater since the products launched.
The milestone reflects how quickly optimism has faded in digital assets.
After hitting record highs in early October, Bitcoin has dropped more than 30% amid risk-off sentiment and profit-taking by long-term holders.
The decline has caught Wall Street off guard, given the scale of institutional cash that entered the market following Donald Trump's election win.
ETF demand has been strong all year, with more than 110 cryptocurrency-focused funds now trading in the United States.
Still, the latest downturn shows that the ETF wrapper does not shield investors from Bitcoin's sharp volatility.
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Bitcoin Loses Cycle Trendline As Momentum Turns Lower
BTC Liquidity & Price Analysis (Source: TradingView)
Bitcoin has now broken the multi-month trendline that supported every rebound of the 2024–2025 cycle.
Price sits below the 20-, 50-, 100- and 200-day EMAs, which are stacked between $100,000 and $108,000.
This alignment typically appears in mature downtrends when every rally is sold.
The failed retest of $100,000 earlier this week reinforced bearish control.
Volume data shows thin support across the $90,000 range, leaving Bitcoin in an "air pocket" where historical bids are limited.
The next major liquidity cluster sits far lower, inside the $72,000 to $78,000 zone that anchored last year's base.
Weekly Chart Break Signals Deeper Reset
BTC Weekly Price Action (Source: TradingView)
On the weekly chart, Bitcoin has lost a trendline held since late 2023.
That structure guided the entire advance through the 2024 halving and the ETF-driven rally to $120,000.
Losing it removes the cycle's most important bullish reference point.
Weekly RSI has slipped into the high 30s, matching prior correction phases where Bitcoin retraced 20% to 30% before stabilizing.
MACD has crossed deeper into negative territory, signaling fading trend strength and persistent bearish divergence.
Key Levels To Watch As Bitcoin Slides
Bitcoin's next critical support zones sit near $82,000 and $68,000.
These levels represent the consolidation bands that formed before the March breakout and have historically attracted long-term buyers.
If sellers push price into the mid-$70,000s, Bitcoin enters a textbook "cycle reset" area where long-term holders tend to reaccumulate.
For bulls, the requirement is clear: reclaiming the $100,000 region and closing above it on the weekly chart.
Until then, momentum remains aligned with sellers.
Each failed intraday bounce under the descending trendline shows that traders are fading strength with confidence.
Broader sentiment across major altcoins has weakened as well, with Ethereum (CRYPTO: ETH) trading near $3,045 after losing its short-term trendline and XRP (CRYPTO: XRP) holding around $2.17 while pressing into multi-week support.
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