Bitcoin is facing a challenging period as it struggles to reclaim key resistance levels amidst macroeconomic uncertainty and trade war fears impacting both the cryptocurrency and equity markets in the U.S. Since the beginning of the year, Bitcoin has seen a significant decline of over 29% in its value, with no clear signs of a reversal in the downtrend yet. This has left investors questioning whether the bull cycle is over or if the market is gearing up for a major comeback.
Despite the prevailing negative sentiment, on-chain metrics indicate that there is still strong demand for Bitcoin and Ethereum. Data from CryptoQuant reveals that the current spread between the Exchange Inflow of all stablecoins on the Ethereum network and the Inflow of BTC + ETH (selling pressure) is at an all-time high, surpassing previous peaks in coin demand. Historically, such trends have signaled key accumulation zones before price recoveries, with the highest demand for BTC and ETH recorded near Bitcoin’s all-time high at $101K.
While uncertainty looms, this on-chain signal suggests that accumulation may be underway, potentially allowing Bitcoin to stabilize and reclaim higher price levels. The next few days will be crucial in determining whether bulls can regain control or if further declines are on the horizon.
Bitcoin has officially entered bear market territory, with analysts predicting a deeper correction as fear spreads across global financial markets due to erratic policies by U.S. President Trump and rising speculation about a potential recession. However, some analysts believe that strong demand for BTC and ETH persists, pointing to potential recovery opportunities.
Currently trading at $83,500, Bitcoin is struggling to reclaim key resistance levels, with the $86,000 level being a critical threshold to watch. Failure to push above this level could lead to further downside, potentially dropping below the $80K support zone and triggering a deeper correction into the $75K-$78K demand zone.
Traders and investors are closely monitoring Bitcoin’s movements to see if it can regain lost ground and overcome selling pressure. The next few days will be pivotal in determining the short-term trajectory of Bitcoin and whether it is poised for a major move in the near future.