Bitcoin (BTC) is facing a critical juncture as it struggles to maintain support above $85,000 amidst heavy selling pressure and market uncertainty. Despite positive news of the US Strategic Bitcoin Reserve confirmed by US President Donald Trump’s Executive Order, the market has failed to see a significant uptick in buying momentum, leading to increased volatility and a short-term bearish outlook.
Bears have taken control of price action, pushing BTC into a consolidation phase as traders remain uncertain about its next move. The announcement of a government-backed Bitcoin reserve was expected to fuel bullish sentiment, but the market has yet to reflect any strong buying interest. However, on-chain data from CryptoQuant indicates that the average monthly Fear and Greed Index has dropped to an acceptable level, suggesting that the worst of the selling pressure may be fading.
The current price action of Bitcoin has left investors frustrated, especially those who anticipated a bullish year for the cryptocurrency market. Despite attempts at recovery, BTC has been trending downward since late January, with selling pressure dominating price movements. Even positive developments like Trump’s announcement have failed to trigger a sustained rally, highlighting the high level of market uncertainty driven by global trade tensions.
Top analyst Axel Adler believes that the recent price swings may not be as significant as they appear, noting that the market’s reaction to recent volatility is stabilizing. He emphasized that the next trading week will provide more clarity on the impact of the US government’s initiatives on the market.
For Bitcoin to regain momentum, it must reclaim the $90,000 level. A strong push above this resistance and a sustained hold could confirm a recovery rally, potentially attracting renewed buying interest. However, failure to reclaim $90K could signal a bearish turn, with prices potentially moving lower towards $80,000 or below.
Traders are closely monitoring Bitcoin’s price action in the coming days to determine whether bulls can regain control or if selling pressure will intensify further. The next few days will be crucial in determining the direction of Bitcoin’s mid-term trend and whether it can break above resistance levels to signal a potential rally.