Bitcoin is currently navigating a tumultuous phase as it struggles to exceed significant resistance levels while remaining precariously positioned above essential support thresholds. The cryptocurrency market is entrenched in a narrow trading range, mirroring an increasing sense of indecision among traders and investors. The atmosphere is laden with uncertainty, compounded by macroeconomic conditions and ongoing political developments that continue to obscure market sentiment.
Recent actions by US President Donald Trump have injected further volatility into financial markets, with unpredictable policies and newly imposed tariffs causing ripples. His erratic decisions have only intensified the already fragile mood, pushing risk assets like Bitcoin into a deeper state of consolidation.
Despite experiencing brief rallies, Bitcoin has once again faced rejection when attempting to breach descending resistance levels, as noted by crypto analyst Carl Runefelt. This regression, accompanied by dwindling trading volume, suggests that the buying power is faltering. Runefelt warns that if trading volume does not improve and BTC remains confined below critical price points, the bearish target of $78,600 could become a reality.
For now, bulls are actively defending support zones, but the waning momentum is raising concerns. Unless Bitcoin manages to reclaim higher value levels soon, the likelihood of a more profound correction will continue to grow, making the imminent days pivotal for determining the market’s subsequent direction.
Bitcoin Down 25% from January ATH as Bears Tighten Grip
Currently, Bitcoin is down 25% from its all-time high achieved in January, and bulls are finding it increasingly difficult to assert control. Despite several attempts to turn the tide, BTC is holding above the $81,000 level—a crucial support zone—but has yet to reclaim the $86,000 mark necessary for any meaningful recovery. This inability to gain ground has weakened market confidence, positioning bulls in an unenviable situation.
Surging macroeconomic uncertainty and fears related to escalating trade disputes, particularly under President Trump’s inconsistent policies, have amplified market volatility. These elements continue to favor bearish sentiment, placing additional pressure on high-risk assets such as Bitcoin. As broader financial markets face challenges, bullish sentiment in the crypto landscape is dwindling rapidly.
A sense of panic is starting to emerge among some investors as selling pressure shows no signs of abating. Nevertheless, a glimmer of optimism persists among market observers who believe a bounce could occur once critical resistance levels are effectively reclaimed.
Runefelt recently shared insights regarding Bitcoin’s failure to break above descending resistance — an indicative bearish sign. He also emphasized that the declining trading volume points to thinning market participation, which often precedes substantial price movements. In this scenario, the bearish target of $78,600 remains a strong possibility if bulls cannot regain momentum.
Presently, the market remains on high alert. Bitcoin’s capacity to sustain levels above $81,000 and make a concerted effort to surpass $86,000 will be crucial in determining whether a rebound is feasible or if a further downward leg is imminent.
Technical Details: Key Levels to Hold
Currently trading at $83,500, Bitcoin has experienced days of erratic price action that have rendered traders uncertain of the market’s next move. The volatility between critical price levels illustrates the hesitance of both bulls and bears, who are struggling to establish dominance. For bullish investors, the immediate hurdle lies in recapturing the $85,000 level, aligning with the 4-hour 200-day moving average (MA). A successful breach above this level would signal short-term strength.
Beyond this, the next crucial level is $86,000, coinciding with the 4-hour exponential moving average (EMA). Successfully reclaiming this range could facilitate momentum shifting back to the bulls, potentially paving the way for a recovery towards $90,000.
However, the most significant short-term level to monitor remains the support at $81,000. This price point has served as a robust floor in recent weeks, and a breach below it would likely provoke additional downside pressure. Given the ongoing macro uncertainties and market volatility, it is imperative for bulls to defend this support while working to recover the moving averages above. The forthcoming sessions will be critical in determining whether Bitcoin can enact a recovery or slide further into correction territory.
Featured image from Dall-E, chart from TradingView
