Bitcoin (BTC) Continues To Experience Massive Selling Pressure

Bitcoin (BTC) continues to experience massive selling pressure as global trade war fears and macroeconomic uncertainty fuel market-wide fear.

Bitcoin (BTC) has been experiencing massive selling pressure in recent times, largely driven by global trade war fears and macroeconomic uncertainty that has sparked fear in the market.

The price has been holding above the critical $80K level but remains stuck below $85K, failing to establish a clear short-term direction. As investors remain hesitant to take major positions, BTC is in a fragile state, where both bulls and bears are patiently waiting for the next major move.

However, despite the current uncertainty, key market metrics suggest a moderately bullish sentiment in the Bitcoin options market. There is a greater concentration of contracts and trading volumes in call options, indicating that some traders are positioning for potential upside.

The next few trading sessions will be crucial, as Bitcoin must either reclaim key resistance levels to confirm a recovery or risk further downside pressure if sellers continue to dominate. With the options market hinting at potential upside and BTC’s price action remaining uncertain, traders are closely monitoring key support and resistance zones.

Bitcoin Market Signals Suggest A Potential Rebound

Bitcoin has dropped nearly 20% since the start of the month, with bears largely in control as they push prices lower. The chart shows an attempt by bulls to stabilize the price above the 200-day moving average (MA) at the $80K level.

But unless bulls quickly regain momentum and push BTC above the 200-day exponential moving average (EMA) at $85,500, the downtrend could continue.

Some analysts believe that BTC could be gearing up for a massive recovery once it stabilizes above $80K and reclaims the $90K mark.

Despite short-term weakness, Bitcoin’s long-term fundamentals remain strong. Institutional adoption continues to expand, and US President Donald Trump’s plan to establish a Strategic Bitcoin Reserve could serve as a major catalyst for future price movements.

If demand increases and confidence returns, BTC may see a significant push toward new highs.

Top analyst Axel Adler shared insights on X (formerly Twitter) into the derivatives market. According to recent data, there is a greater concentration of contracts and trading volumes in call options than put options.

This imbalance suggests that some traders are positioning for potential upside, anticipating a rebound from current price levels. However, there are also large put option positions in the $75,000-$85,000 range, indicating that investors are hedging against further downside risks.

This hedging activity signals uncertainty and the potential for high volatility, making BTC’s next move highly unpredictable. The coming weeks will be crucial, as Bitcoin must either reclaim higher levels to confirm a recovery or risk further declines if selling pressure continues. Traders are closely monitoring price action, waiting for a decisive breakout in either direction.

Bulls Fight To Reclaim Key Levels

Bitcoin is currently trading at $84,000, attempting to hold above the 200-day MA around this level.

Bulls need to regain momentum quickly and push BTC above the 200-day EMA at $85,500 to establish a foundation for a potential recovery. However, the MACD indicator is still in sell mode, and RSI is approaching the neutral 50 level, indicating that momentum remains largely with sellers.

But if bulls manage to stabilize the price and drive it back above $85K, it could signal a shift in balance, putting more pressure on bears to defend remaining support.

However, if bulls fail to reclaim the $85K level, Bitcoin could face renewed selling pressure, leading to a potential drop below the critical $80K mark. This would further extend the current downtrend, increasing the risk of deeper corrections.

For BTC to confirm a recovery, it must break past the $90K mark, a key psychological and technical resistance. Reclaiming this level would signal renewed buyer confidence and could set the stage for a stronger rally.

But failure to hold current support could lead to increased volatility and further downside risks, as seen during previous periods of strong selling.

With Bitcoin hovering at crucial levels, the next few trading sessions will be critical in determining whether BTC can stabilize and regain lost ground or if the downtrend will continue toward lower support zones.