Bitcoin (BTC) is currently experiencing significant selling pressure, having recently dropped below the $85,000 mark. This decline has pushed the cryptocurrency to its lowest values since November 2024, resulting in heightened fear and uncertainty among investors. The broader crypto market is grappling with negative macroeconomic conditions and an increasing risk-off sentiment that is affecting investor behaviors.
The situation has been complicated by the policies of U.S. President Trump, which have introduced further volatility into the market. Rising fears surrounding global trade tensions and unpredictable economic decisions are unsettling investors, with the U.S. stock market also hitting its lowest point since September 2024. This bearish sentiment is dragging Bitcoin and other cryptocurrencies down along with it.
According to data from Glassnode, the Mayer Multiplier indicates that Bitcoin’s next significant support level is projected at $66,000. If the current trend of selling persists, BTC may approach this threshold in the coming weeks, representing a substantial correction from its prior highs.
As Bitcoin finds itself in a critical phase, traders and investors are monitoring its ability to stabilize and reclaim important price levels or whether further declines are imminent. The upcoming days are set to be pivotal for Bitcoin’s short-term outlook.
Bitcoin Struggles Below 200-Day Moving Average
Since late January, Bitcoin has been on a consistent downtrend, with fear largely dominating investor sentiment. Many market participants now speculate that the bullish cycle may have concluded, as BTC continues to create lower highs and breach vital support levels. The mounting selling pressure reflects bearish control over the market, with cautious investors setting their sights on lower targets.
Since the U.S. elections in November 2024, macroeconomic uncertainty and volatility have emerged as primary market drivers. Escalating global trade tensions, erratic economic policies, and a shaken investor confidence have all played a role in Bitcoin’s elongated correction. Concurrent struggles in U.S. stock markets have further hindered Bitcoin’s momentum for recovery.
Top analyst Ali Martinez recently shared insights on social media, noting that Bitcoin is now trading below the crucial 200-day moving average, a key technical indicator that typically signals the direction of long-term trends. With the Mayer Multiple suggesting that the next major support level is at $66,000, a failure to stabilize above current prices could send Bitcoin towards this lower support zone in the weeks ahead.
For Bitcoin to reverse its downward trend, the bulls must reclaim the 200-day MA positioned around $83,500. Successfully breaking and holding above this level could signify a return of strength to the market and might help prevent further declines. Conversely, if BTC fails to regain momentum, fear and uncertainty will likely continue steering prices lower, making the forthcoming weeks crucial for Bitcoin’s market architecture. Stakeholders are closely monitoring Bitcoin’s price action as it remains at a pivotal juncture that may dictate its mid-term trend.
BTC Eyes Recovery at $85K
At present, Bitcoin is trading at approximately $81,700 after losing the significant 200-day Moving Average at $83,450—an indicator that previously underpinned its bullish momentum. With BTC now situated below this critical threshold, the market continues to operate under bearish pressures, creating a keen interest among traders for signs of a potential reversal.
For bulls to regain control, Bitcoin must overcome the $85,000 mark in the coming days. A robust push above this level could indicate a resurgence of buying interest, setting the stage for a potential recovery rally. However, failing to break above $85K may expose the market to increased downside pressure.
If Bitcoin dips below the $80,000 to $78,000 range, the likelihood of a decline toward subsequent significant support levels around $75,000 to $72,000 could increase. Such a drop would further entrench bearish sentiment, postponing any meaningful recovery prospects in the near future. The next trading sessions will be critical as Bitcoin navigates a precarious position, where either the reclamation of key levels or a deeper correction becomes imminent.
Featured image from Dall-E, chart from TradingView.
