Bitcoin is once again facing pressure as global markets grapple with macroeconomic fears and political unpredictability. The erratic policy decisions of United States President Donald Trump, particularly around trade, have heightened investor anxiety and triggered volatility across equities and cryptocurrencies. Bitcoin, in particular, has struggled to regain momentum and is currently trading below critical resistance near the $90,000 mark.
Despite recent attempts to recover, demand for Bitcoin remains weak at current levels, and bulls have yet to mount a convincing rally. Traders are closely monitoring the situation, as Bitcoin needs to reclaim $90,000 to establish a bullish narrative. However, uncertainty continues to reign in the market.
Adding to the cautious sentiment, CryptoQuant data shows that the average trader is sitting at an unrealized loss of -13.86%, indicating mounting selling pressure. While such loss levels have historically marked bottom zones, they also reflect a market gripped by fear, hesitation, and lack of conviction. With Bitcoin down more than 29% from its January all-time high, the next move will be critical.
The market sentiment has turned bearish as Bitcoin faces a crucial test to prove that the current market cycle remains bullish. The macroeconomic environment, including recession fears, persistent inflation, and chaotic global policies, has cast a shadow over all risk assets, including cryptocurrencies. As selling pressure intensifies, many market participants are anticipating the early stages of a bear market.
However, analyst Ali Martinez offers a more optimistic view, suggesting that the current average unrealized loss of -13.86% for Bitcoin traders could signal the exhaustion point of selling pressure. Historically, such conditions have marked local bottoms and preceded strong recoveries. Bulls have the opportunity to regain control by making a decisive move above resistance zones to invalidate the bearish outlook and reestablish upward momentum.
Bitcoin is currently trading in a tight consolidation zone between $87,000 and $81,000, indicating a potential breakout on the horizon. A move above the $88,000 level would signal short-term strength and could lead to a rally towards $90,000 and beyond. However, failure to reclaim $88,000 could invite renewed selling pressure, pushing Bitcoin below $81,000 and towards deeper support zones.
As Bitcoin remains trapped in this narrowing range, market participants are closely watching volume and volatility indicators to anticipate the next breakout direction. The coming days will be pivotal in determining whether Bitcoin reclaims control or continues its drift into further correction territory.