Key Insights:

Bitcoin is facing a key resistance zone around $81,000, a level that previously triggered a major rejection in May 2026.

Analyst Crypto Patel said Bitcoin could face further downside of 40% after being rejected near $81,300.

Bitcoin needs a higher-timeframe close above $83,000 to invalidate the bearish setup.

Bitcoin has reached its first major technical test after gaining more than 20% during the latest recovery. BTC climbed above $81,000 on Aug. 25 before sellers pushed the cryptocurrency back below $80,000.

The rejection has returned the $80,000–$83,000 region to focus after a similar ceiling capped Bitcoin in May. That makes this area a near-term reference point for traders watching whether the rebound can extend or fade into another lower high within the broader bear-market structure.

Bitcoin Price Faces Major Resistance At $81,000

On Aug. 25, Bitcoin attempted to move above the $80,500 level. However, it faced a major rejection there and is trading near $78,965 as of press time. Analysts are closely watching the next price move.

Analyst Crypto Patel said Bitcoin could face further downside after being rejected near $81,300. Patel noted that BTC is trading within a major daily bearish order block between $80,000 and $83,000. He also pointed to an inverted hammer on the daily chart, which could signal a bearish reversal.

According to Patel, Bitcoin must secure a higher-timeframe close above $83,000 to invalidate the bearish setup. If the rejection continues, he expects the liquidity below to be the next target, with $50,000–$55,000 as his main downside range.

Patel identified $83,000 as the key structural decision point for Bitcoin’s next major move.

Bitcoin Price Might See Next Bear Trend Soon

Crypto analyst Cyclop said Bitcoin could remain in a bearish trend if the asset fails to reclaim and hold above $83,000. If BTC stays below that level, Cyclop expects a possible decline toward $50,000 by November.

However, a sustained move above $83,000 would change his outlook. In that case, he said he would begin accumulating Bitcoin around $69,000. He also said that in October 2025 he accurately predicted the BTC cycle top at $126,000. He added that he remains confident about the bottom this time as well.

Citing data from Glassnode, crypto analyst Ted Pillows noted that $5.2 billion in short positions would be liquidated if Bitcoin reaches $85,000. Meanwhile, a decline to $75,000 could trigger about $4.6 billion in long liquidations. That leaves a large concentration of leverage around current Bitcoin price levels, which can make these nearby thresholds especially important for short-term positioning.

Bitcoin Needs Spot Demand To Sustain Rally

Popular analyst Daan Crypto Trades said Bitcoin’s recent rally was largely driven by a short squeeze.

Since reaching its initial high on Friday, actual accumulation has remained relatively stable, while spot trading volumes have stayed elevated. At the same time, open interest has continued to decline, suggesting limited appetite for additional leveraged positions.

Daan said continued spot and ETF inflows, combined with Bitcoin holding near current levels, could provide an important signal in the coming days.

With short positions already squeezed, he said Bitcoin now needs strong spot buying pressure to sustain the rally. Spot demand has remained present, but price needs to continue following through to prevent momentum from stalling.