Bitcoin (BTC) Continues to Trade Below $85K Level, Fueling Fears of Further Downside

Bitcoin (BTC) continues to trade below the $85K level, fueling fears of further downside as the bearish trend remains intact. Bulls are losing momentum

Bitcoin (BTC) continues to trade below the $85K level as the bearish trend remains intact.

* Despite the recent price drops, new data from Glassnode indicates that Accumulation Trend Scores may be showing early signs of BTC accumulation after three months of persistent distribution.

* This shift in behavior could be a crucial turning point, especially if it's confirmed by other relevant indicators and if it's sustained over an extended period.

Bitcoin has slipped below the $100K mark, officially entering correction territory, and the bearish trend was fully confirmed when BTC failed to hold above $90K.

Since reaching its all-time high (ATH) of $109K in January, Bitcoin has dropped over 29%, and it appears this trend could continue as global macroeconomic conditions remain unfavorable.

Macroeconomic uncertainty and volatility are key drivers of price action, and erratic policy decisions from U.S. President Donald Trump have added to the turbulence in both crypto and traditional markets.

The global trade war narrative and tightening monetary conditions continue to weigh heavily on risk assets, contributing to Bitcoin’s inability to sustain a meaningful recovery.

However, there is a shift in market behavior that could indicate a turning point. Key metrics from Glassnode reveal that after three months of distribution, Accumulation Trend Scores hint at early signs of BTC accumulation.

These scores, designed by Glassnode, measure the rate at which coins are flowing off of exchanges, with a lower velocity of coins leaving exchanges over time indicating accumulation by large-scale investors.

As these Accumulation Trend Scores begin to decrease at lower prices, it suggests that less coins are being distributed at these levels, which could be interpreted as an indication that some investors are stepping back in at these lower levels.

This transition from distribution to accumulation has often preceded a recovery phase in past market cycles.

The next few weeks will be crucial, as Bitcoin’s ability to hold support and attract fresh demand will determine whether the market is preparing for a rebound or a deeper correction.

Bitcoin In Correction Mode – Accumulation Trends Hint At A Possible Shift

Bitcoin has officially entered correction territory after losing the $100K mark, and the bearish trend was fully confirmed when BTC failed to hold above $90K.

Since reaching its all-time high (ATH) of $109K in January, Bitcoin has dropped over 29%, and it appears this trend could continue as global macroeconomic conditions remain unfavorable.

Trade war tensions between the United States and key global economies like Europe, China, and Canada continue to pressure financial markets, leading to uncertainty and risk-off sentiment.

As these geopolitical issues intensify, both crypto and traditional markets remain highly volatile, struggling to find stability.

However, not all indicators are bearish. Ali Martinez shared insights on X, revealing that the tide is turning for Bitcoin. After three months of distribution, the Accumulation Trend Scores model from Glassnode is hinting at early signs of BTC accumulation.

Martinez stated: “After 3 months of Accumulation Trend flowing in the lower velocity, we may be seeing the first signs of fib lower in the last 24 hours.”

This phase of accumulation is a critical turning point that will determine whether Bitcoin sees a fast recovery above key supply levels or a long consolidation period before the next major move. The next few weeks will be decisive for BTC’s short-term outlook.

$80K Retest on the Horizon?

Bitcoin is currently trading at $83,000, caught in a tight consolidation as it struggles to break above $85K while maintaining support at $82K. This range-bound price action has left investors uncertain, with bulls attempting to reclaim higher levels and bears pressing for further downside.

If bulls want to regain control, BTC must push above $89K, a key resistance level aligned with the 4-hour 200 moving average (MA). A successful breakout above $90K could confirm a recovery trend and open the door for further gains toward $95K and beyond.

But if Bitcoin fails to break above $90K in the coming sessions, the risk of a deeper correction increases. Losing $82K could send BTC into a downward spiral, potentially retesting $80K or even lower levels.

With market sentiment still fragile, the next major move will likely determine the short-term trajectory of Bitcoin’s price action.