Bitcoin (BTC) Enters Consolidation Phase, Trading Below the $85K Mark and Above $80K

Bulls now face a critical test, as they must push BTC above $90K to prevent bears from driving prices lower.

After weeks of intense selling pressure, Bitcoin (BTC) has entered a consolidation phase, trading below the $85K mark and above $80K.

Bitcoin Price Today: BTC/USD trades at $84,300, struggling to regain momentum

As the apex cryptocurrency faces a critical test to push BTC above $90K, rendering a setback for the bulls could see bears attempt to drive prices lower.

Bitcoin Consolidates Below $85K As Bulls Must Act Quickly

Bitcoin is currently trading at $84,300, struggling to regain momentum after weeks of selling pressure. The price is now below the 200-day exponential moving average (EMA) at $85,500 but remains slightly above the 200-day moving average (MA) around $84,000.

This consolidation phase puts pressure on bulls to hold this support and reclaim the $85K level to prevent further downside. For a confirmed recovery rally, BTC must break through $85K and push above $90K as soon as possible.

Reclaiming these levels would signal renewed bullish momentum, potentially reversing the current downtrend and leading to a retest of higher resistance zones. However, if BTC fails to reclaim the 200-day MA and EMA, it could face stronger selling pressure, leading to a possible drop below the $80K level.

Losing this key psychological support would likely trigger panic selling, forcing BTC into lower demand zones and extending the current bearish phase.

With market conditions still uncertain, bulls must act quickly to push BTC above resistance and prevent further downside risks. The next few trading sessions will be crucial in determining Bitcoin’s short-term direction.

This localized selling pressure adds to the uncertainty, but according to the data, the scale of the current decline does not appear to threaten the broader bull market.

Instead, this appears to be a short-term profit-taking event following Bitcoin’s all-time high (~$109K) and a reaction to macroeconomic factors.

Federal Reserve continues to maintain a tight monetary policy stance amid better-than-expected inflation data, leading markets to adjust their rate forecasts upwards.

This has placed pressure on risk assets, such as BTC, contributing to increased volatility and cautious investor sentiment.

As a result, Bitcoin is facing selling pressure, but according to CryptoQuant data, the current phase of negative demand suggests BTC distribution, a pattern that has historically led to temporary corrections, has not always signaled a full trend reversal.

According to the data, Bitcoin demand has declined by approximately -140K BTC, which is significantly lower than previous crisis outflows of -268K BTC and -437K BTC.

This localized selling pressure adds to the uncertainty, but according to the data, the scale of the current decline does not appear to threaten the broader bull market.

Instead, this appears to be a short-term profit-taking event following Bitcoin's all-time high (~$109K) and a reaction to macroeconomic factors.

Federal Reserve continues to maintain a tight monetary policy stance amid better-than-expected inflation data, leading markets to adjust their rate forecasts upwards.

This has placed pressure on risk assets, such as BTC, contributing to increased volatility and cautious investor sentiment.

As a result, Bitcoin is facing selling pressure, but according to CryptoQuant data, the current phase of negative demand suggests BTC distribution, a pattern that has historically led to temporary corrections, has not always signaled a full trend reversal.

According to the data, Bitcoin demand has declined by approximately -140K BTC, which is significantly lower than previous crisis outflows of -268K BTC and -437K BTC.

This localized selling pressure adds to the uncertainty, but according to the data, the scale of the current decline does not appear to threaten the broader bull market.

Instead, this appears to be a short-term profit-taking event following Bitcoin’s all-time high (~$109K) and a reaction to macroeconomic factors.

Federal Reserve continues to maintain a tight monetary policy stance amid better-than-expected inflation data, leading markets to adjust their rate forecasts upwards.

This has placed pressure on risk assets, such as BTC, contributing to increased volatility and cautious investor sentiment.

As a result, Bitcoin is facing selling pressure, but according to CryptoQuant data, the current phase of negative demand suggests BTC distribution, a pattern that has historically led to temporary corrections, has not always signaled a full trend reversal.

According to the data, Bitcoin demand has dropped by approximately -140K BTC, which is less than previous demand outflows during crises.

This localized selling pressure adds to the uncertainty, but according to the data, the scale of the current decline does not appear to threaten the broader bull market.