Bitcoin is currently facing significant pressure, trading below vital demand levels as bearish sentiment intensifies. Following a brief phase of optimism and a slight uptick, selling pressure has returned, pulling BTC downwards and raising concerns over a possible deeper correction. This change in mood occurs against a backdrop of fragile broader financial markets, with ongoing macroeconomic instability and geopolitical uncertainties continuing to undermine investor confidence.
Despite efforts to reclaim higher levels, Bitcoin has struggled to maintain key thresholds, with momentum now leaning towards the bears. Traders and analysts are monitoring upcoming resistance zones, which are likely to dictate the market’s short-term trajectory.
Data from CryptoQuant indicates that Bitcoin is currently confronted with three prominent resistance levels. The first is $89,000, representing the realized price for short-term holders within the 3-6 month range. The second critical level is $90,000, which is the total realized price for all short-term holders. Lastly, the $95,000 mark corresponds with the 111-day Simple Moving Average (SMA), historically known to act as a significant barrier in trending markets.
Bitcoin Bulls Attempt to Reclaim Critical Resistance
Bitcoin has declined over 22% from its all-time high, and current trends suggest that this downward movement may not yet be done. Following a brief period of consolidation and small rallies, BTC continues to weaken, struggling to attract substantial demand at important support levels. Bulls must step in soon to defend current prices to prevent a further downtrend. Without a strong recovery, the overarching trend may continue to favor the bears.
The macroeconomic environment remains highly unstable, fuelled by apprehensions over potential trade wars and escalating global tensions, which are unsettling financial markets. Risk assets, including cryptocurrencies, are particularly susceptible, with investors seeking safer options leading to capital flowing away from high-volatility assets like Bitcoin, exacerbating the recent downturn.
Top analyst Axel Adler recently provided crucial technical insights on X, underscoring the resistance zones that Bitcoin needs to break through to regain traction. Adler notes that Bitcoin is currently up against three vital resistance points: $89,000—representing the Short-Term Holders’ Realized Price for the 3-6 month period; $90,000—the overall Realized Price for all Short-Term Holders; and $95,000, corresponding with the 111-day Simple Moving Average (SMA). These levels now serve as primary obstacles to any potential bullish recovery.
An effective breakout beyond these resistance levels would likely affirm strength in the current bullish trend and hint at a potential reversal. Nevertheless, until these levels are reclaimed, Bitcoin remains susceptible. The coming days will be pivotal as bulls strive to regain control and rebuild confidence within the crypto market. Should they falter, further losses could ensue—pushing BTC further away from its recent peaks.
BTC Maintains $85K: Key Technical Levels to Monitor
Currently, Bitcoin trades at $85,000 after losing a critical support level around $85,500, previously aligned with both the 200-day moving average (MA) and the 200-day exponential moving average (EMA). This breakdown has weakened the overall market structure and placed BTC in a precarious position as bearish momentum builds. For the time being, bulls must hold the $85,000 level to avoid a significant retracement and preserve recovery chances.
If buyers can defend this level and regain control, the next important target is $90,000—a resistance zone crucial for confirming the onset of a new bullish phase. A decisive move above $90K would indicate renewed strength and could help to restore confidence in the broader market.
Conversely, if Bitcoin fails to hold the $85K mark, selling pressure is likely to intensify, with crucial support sitting around the $81,000 level. A fall below that point could trigger a more significant correction and exacerbate bearish sentiment. As the price hovers near a critical technical zone, the upcoming days will be vital for determining the short-term direction. Bulls must take swift action to avert further declines and reclaim momentum before bears establish tighter control over the market.
Featured image from Dall-E, chart from TradingView
Editorial Process for bitcoinist is focused on delivering thoroughly researched, accurate, and unbiased content. We adhere to stringent sourcing standards, and every page undergoes meticulous review by our team of top technology experts and seasoned editors. This approach ensures the integrity, relevance, and value of our content for our audience.
