Selling BTCUSD with $83,500 in sight as risk appetite fades away

The BTCUSD pair continues to head south, trading below the key $88,000 threshold. This confirms sellers are in the driver’s seat, raising the odds for more losses ahead. The current bearish run has been keeping the pressure on since early November, though technicals now suggest a short-term rebound may kick in. 

At the moment, the Stochastic Oscillator is knocking on the door of oversold territory (%K = 28 and %D = 32), a sign that a brief relief rally may be in the cards. Meanwhile, the Chaikin Oscillator is deep in the red, clearly signaling that selling pressure is holding sway. Although its decline leveled off somewhat during Tuesday's morning session, demand is still largely on the sidelines, with big players showing little appetite to buy.

Fundamentally, the outlook is pouring fuel on the fire. The main culprit was a sharp $351.7 million capital flight from spot Bitcoin exchange-traded funds (ETFs) on December 15—a clear case of investors taking money off the table as sentiment soured. Further adding to the headwinds are reports of widespread mining shutdowns in China’s Xinjiang region, which could cast a dark cloud over market attitude in the near term and force miners to sell BTC in order to keep the lights on.

Despite the dark clouds, longer-term tailwinds remain, and they may cushion the fall. These include MicroStrategy’s ongoing aggressive Bitcoin buying spree, alongside prospects for more explicit US regulation in 2026—a point highlighted by Grayscale analysts.

For now, the most likely scenario until December 23 is a technical rebound from the December 15 selloff, followed by a test of deeper support levels and an attempt to find its footing. The key threshold to watch on the downside could be $83,500—the local low of this month—where buyers may finally step in.

Pay attention to the trading plan outlined below:

Sell BTCUSD when it rebounds to resistance from the $88,000 level. Take profit: $83,500. Stop loss: $90,590.

This forecast holds true from December 16 till December 23, 2025.