BTC Trapped Under 4H SMA 200: Breakdown or Fakeout Next?

3 mins mins

Key Insights:

Bitcoin remains below the 4H SMA 200, keeping short-term trend pressure tilted to sellers.
Oversold MACD and lower Bollinger Band suggest selling pressure may be stretched, not reversed yet.
BTC trades between $90,000 resistance and $84,000 support, leaving the price stuck in a neutral range.

*BTC Trapped Under 4H SMA 200: Breakdown or Fakeout Next?*

Bitcoin continues to trade below the 4-hour Simple Moving Average 200. The moving average remains angled lower, showing that short-term trend pressure has not shifted. Price has tested this level several times and failed to hold above it, keeping sellers active on rebounds.

BTC was trading near $86,800, with mild losses over the past day and week. Price action remains tight, with limited follow-through in either direction. This behavior reflects hesitation across the market as buyers have not shown strength near resistance.

Traders tracking this level note that “BTC 4H is still pinned down by SMA 200.” As long as price remains below it, upside attempts remain vulnerable to rejection.

Momentum Signals Show Selling Pressure May Be Stretched

On higher timeframes, momentum indicators show Bitcoin in an oversold state. The MACD has reached levels previously seen during major market pullbacks. This confirms strong downside momentum but also shows that selling pressure may be nearing exhaustion.

Bitcoin is also trading close to the lower Bollinger Band. This suggests the price has moved far from its recent average. In past cycles, similar conditions have often preceded short recovery moves rather than full trend shifts.

Market observers point out that “relief is coming,” though no confirmation has appeared. Price remains below key averages, and momentum must stabilize before any sustained move can develop.

$BTC 🟠

The last time Bitcoins MACD was this oversold was near the bottom of the bear market.

It is also at its lower Bollinger Band.

Relief is coming. pic.twitter.com/5KoV8TFVzg
— James (@JamesEastonUK) December 24, 2025

Defined Range Keeps Bitcoin in a No-Trading Zone

Bitcoin remains locked between resistance near $90,000 and support around $84,000–$85,000. This range has contained price action since the recent selloff, limiting clear trade setups.

The $90,000 level marks a former support area that acts as overhead supply. A clean move above this zone would suggest renewed buying strength and allow prices to expand higher.

On the downside, the $84,000–$85,000 zone has attracted buyers during recent dips. If this area fails, price could move toward lower levels in the low $80,000 range. Until either boundary breaks, direction remains unclear.

Market Waits for a Clear Signal

Volatility has narrowed as Bitcoin trades sideways within the range. Volume has also eased, showing limited participation from both sides. This combination often appears before a larger move, though timing remains uncertain.

Price must either reclaim the 4H SMA 200 and the $90,000 level or return to test lower support. As traders state, “Either Bitcoin needs to reclaim the $90,000 zone, or another retest of the $84,000–$85,000 support zone will happen.” Until then, Bitcoin remains stuck between key levels.

$BTC 4H still pinned down by SMA 200 pic.twitter.com/lGIK2q4vPq
— Cheds Trading (@BigCheds) December 24, 2025

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.