Bitcoin has once again dipped beneath the $85,000 threshold, following an array of erratic price fluctuations that have left investors contemplating its future trajectory. The surge in market volatility came after President Trump revealed plans to create a U.S. strategic crypto reserve, leading to a swift rally that saw BTC soar to $95,000 within hours. However, this surge was ephemeral, as Bitcoin quickly retraced its gains, signaling ongoing market instability.
This tumultuous price movement underscores the prevailing uncertainty surrounding Bitcoin, as traders grapple with whether BTC is poised for another upward movement or susceptible to further declines. Although Trump’s favorable crypto outlook briefly lifted market sentiment, it failed to initiate a sustained breakout, revealing underlying weaknesses in market conditions.
Ki Young Ju, CEO of CryptoQuant, commented on the situation, suggesting that Bitcoin’s market activity will likely remain sluggish until sentiment improves in the U.S. Amid regulatory challenges, macroeconomic volatility, and changing investor emotions, it remains unclear whether Bitcoin can maintain higher price levels. Until more powerful catalysts appear, BTC is likely to continue experiencing a volatile, range-bound trading environment, with traders attentive to the next significant movement.
Bitcoin Indicators Suggest Bull Cycle Is Still Intact
Bitcoin has been struggling to remain above the $90,000 mark for several days, and now it is even failing to hold the $85,000 level. This lack of momentum has confined BTC to bearish territory, with bulls needing to intervene soon to avert a more severe decline. Despite several attempts to recover, Bitcoin and the broader crypto market are still under pressure, unable to confirm a sustained upward trend.
The bulls lost control when BTC fell below $90,000, and the inability to regain this price zone has heightened bearish sentiments, prompting many analysts to predict a potential bear market.
However, Ju contends that the bull cycle is not definitively over. His analysis indicates that on-chain activity remains minimal, and crucial indicators are neutral, suggesting that the overall upward trend is still intact despite recent setbacks. Moreover, fundamentals remain robust, with an increasing number of mining rigs coming online, reflecting ongoing confidence from significant market participants.
Ju also emphasizes that if this cycle were to conclude now, it would represent an unfavorable outcome for nearly all major stakeholders, including seasoned investors, mining companies, traditional finance (TradFi), and even Trump’s pro-crypto initiatives. Retail traders, often viewed as late-cycle entrants, are unlikely to sway the market’s direction at this point.
At present, Bitcoin finds itself at a critical juncture, with the upcoming days being essential in determining whether BTC can recover lost territory or if further declines are inevitable. A decisive break below key support levels may signal an extended correction, while a robust recovery could reignite the upward momentum.
BTC Testing Crucial Liquidity Levels
Currently, Bitcoin is priced at $83,700 after experiencing days of erratic price movements above and below $90,000. The market is exceedingly volatile, with bulls struggling to seize control after BTC lost key support levels. For Bitcoin to initiate a meaningful recovery, it must reclaim the $90,000 level promptly. This threshold is vital for reversing the recent downtrend and shifting momentum in favor of the bulls. However, holding the $85,000 level remains crucial—it has been a key support factor in recent weeks.
If BTC remains below $85,000 in the coming days, it could incite a substantial sell-off, increasing selling pressure and potentially leading to a deeper correction. This scenario would likely confirm the extension of bearish momentum, putting Bitcoin at risk of testing lower support levels.
Currently, traders are monitoring BTC’s ability to recover lost ground or to dip further. If Bitcoin manages to rise above $85,000, it could stave off further declines and provide some short-term stability. Conversely, failing to hold this crucial level may exacerbate the bearish trend, leaving Bitcoin vulnerable to additional declines in the near future.
Featured image from Dall-E, chart from TradingView
