Bitcoin (BTC) is currently facing resistance below the $90,000 threshold, trading just above $85,000, a crucial support level that buyers need to maintain to prevent further declines. Despite recent optimism surrounding the US Strategic Bitcoin Reserve, as highlighted by US President Donald Trump’s Executive Order on Thursday, the market continues to experience significant selling pressure, resulting in increased volatility and a short-term bearish sentiment.
The bears have taken charge, forcing Bitcoin into a consolidation phase as traders remain indecisive about its next steps. Although the government-backed Bitcoin reserve was anticipated to spark bullish momentum, so far, the market hasn’t shown substantial buying interest.
Nonetheless, on-chain metrics from CryptoQuant indicate that the average monthly Fear and Greed Index has decreased to a more manageable level, suggesting that the peak of selling pressure might be waning. If BTC manages to stay above $85K and retakes $90K, it could signal a positive shift in market sentiment. However, continued bearish dominance might lead to a further decline into lower demand regions.
As Bitcoin hovers around a critical level, the upcoming days will be vital in determining whether bulls can reclaim control or if selling pressure will escalate.
Bitcoin Under Pressure Amidst Global Uncertainty
Bitcoin’s price behavior continues to perplex investors, particularly those who hoped for 2025 to be a highly bullish year for Bitcoin and the overall cryptocurrency market. Despite high expectations, BTC has been on a downward trajectory since late January, with selling pressure prevailing in market movements. Positive news like Trump’s announcement of the US Strategic Bitcoin Reserve hasn’t been able to trigger a sustained rally, frustrating many investors.
Heightened market uncertainty, stemming from concerns over global trade tensions, adds to the challenge. Ongoing issues among major economies, particularly regarding US tariff strategies, have weighed on traditional financial markets as well as cryptocurrency, making investors reluctant to take on additional risks. This climate of uncertainty has stifled bullish sentiment, keeping Bitcoin beneath the $90K threshold despite efforts to recover.
Top analyst Axel Adler shared thoughts on social media platform X, suggesting that the recent price fluctuations may not be as consequential as perceived. He noted the average monthly Fear and Greed Index has reached a more stable level, signaling that the market’s response to recent volatility is settling down. Adler stated, “This is just local noise. I believe next week’s trading will reveal what the US government’s initiatives will mean for the market.”
If Adler’s analysis is accurate, the coming weeks could bring more clarity regarding Bitcoin’s medium-term direction. Investors are closely monitoring whether BTC can reclaim $90K, indicating renewed buying interest, or if persistent selling pressure will lead prices lower. Currently, the crypto market remains shrouded in uncertainty as traders await confirmation of the next major movement.
Bulls Need to Reclaim $90K Promptly
Bitcoin is presently trading around $86,000, struggling to set a clear trajectory for the upcoming week. Despite several attempts to rise, BTC remains confined within a narrow range, with neither bulls nor bears completely asserting control over the price movements.
For bulls to regain momentum, Bitcoin needs to reclaim the $90,000 mark. A decisive move above this resistance coupled with a consistent hold would confirm a recovery rally, potentially opening the door for BTC to aim for higher price levels. Escaping this consolidation phase could significantly improve market sentiment and draw renewed buying interest.
Conversely, if BTC fails to regain the $90K level, the market could shift bearish again. Continued weakness at this point would likely drop BTC into lower demand areas, with $85,000 serving as the last critical support before a possible decline towards $80,000 or below.
With uncertainty prevailing in the market, traders are keeping a close eye on Bitcoin’s price movements. The next few days will be critical in determining whether BTC can surpass resistance or if bears will take over and drive prices down.
Featured image from Dall-E, chart from TradingView
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