Bitcoin (BTC) is currently enduring strong bearish pressure, struggling to break above the $85,000 threshold. Since late January, BTC has lost over 29% of its value as macroeconomic uncertainties loom over the market. Fears surrounding global trade wars and volatile conditions have placed both cryptocurrency and U.S. stock markets under considerable strain, leaving investors anxious about Bitcoin’s upcoming moves.
Despite the downtrend, some analysts are cautiously optimistic about a potential market reversal. Notable analyst Ali Martinez has highlighted that global liquidity is expanding rapidly, historically a bullish signal for Bitcoin, which has often seen substantial price increases during periods of rising liquidity. If this trend continues, BTC could experience renewed buying pressure in the weeks ahead.
However, in the short term, bears are firmly in control. Bitcoin must reclaim critical technical levels to initiate any recovery. If the macroeconomic backdrop remains uncertain, BTC risks testing lower support levels before a recovery can take shape. The upcoming weeks are pivotal in ascertaining whether Bitcoin can stabilize or if more losses are likely.
Currently, Bitcoin is trading at its lowest levels since November 2024, with bulls finding it increasingly difficult to regain composure. The ongoing market descent since late January has triggered fears of potentially lower price targets, leading many investors to question if the Bitcoin bull cycle has come to a halt. BTC’s inability to breach resistance levels keeps sentiment heavily biased towards the bearish side, increasing the likelihood of further declines.
For Bitcoin to galvanize a recovery rally, it is essential for bulls to push above the 200-day moving average (MA). At present, BTC is trading at $83,300, just below this crucial technical barrier. Failing to rise above $85,000 soon may prolong the prevailing bearish sentiment and elevate the risk for further downside.
Critical Levels to Watch:
- Key resistance at $85,000 – close to the 200-day MA
- Psychological support near $80,000
A break above the 200-day MA would signal increased buying interest, potentially propelling BTC into higher resistance zones. However, the bearish trend coupled with weak market confidence makes traders hesitant to engage in long positions. If Bitcoin fails to reclaim this pivotal moving average, the chance of a sharp drop below $80,000 becomes pronounced, possibly leading to significant sell-offs.
The next few trading sessions are critical in determining whether Bitcoin can reverse its recent losses or if the bearish trend will push it further into the depths of decline. The interplay between expanding global liquidity and macroeconomic factors will largely dictate Bitcoin’s fate in the near term.
