Bitcoin (BTC) Is at a Pivotal Moment, Bulls Struggle to Reclaim Prices Above $85K

Bitcoin is at a pivotal moment, with bulls struggling to reclaim prices above $85K and bears failing to push BTC below $80K. This indecision in the market has led to growing bearish sentiment

U.S. President Trump’s macroeconomic uncertainty and erratic decisions continue to fuel market volatility, creating aggressive price swings across crypto and U.S. stock markets.

As Bitcoin (BTC) struggles to break out of a tight range, macroeconomic uncertainty and U.S. President Trump’s decisions are closely followed for clues on market direction.

CryptoQuant’s latest analysis delves into a technical indicator that could decide Bitcoin’s next move.

Bitcoin UTXO Block P/L Count Ratio Model Is At 50.2

According to CryptoQuant’s latest insights, the Bitcoin UTXO Block P/L Count Ratio Model is currently at 50.2. This metric measures how many recent BTC transactions are occurring at a profit versus a loss, providing valuable data for gauging market sentiment and potential reversals.

When the P/L Count Ratio is high, it indicates that more transactions are being made at a profit, suggesting strong bullish sentiment and the potential for further price increases. Conversely, a low P/L Count Ratio signals that a greater portion of transactions are resulting in losses, which could be a sign of bearish pressure and potential market weakness.

CryptoQuant's analysis reveals that if this indicator drops by just 30 points, it would reach levels observed during previous cycle corrections.

One notable instance was in July 2021 when Bitcoin experienced a downturn following China’s mining ban, marking the final stage of a major downtrend before a swift recovery.

After falling from highs above $69K to lows around $28K in March 2020, Bitcoin experienced a strong recovery, eventually surpassing $69K again in August 2021. However, this recovery was interrupted by China’s complete ban on cryptocurrency mining in July 2021, leading to another leg down.

Despite the setback, Bitcoin managed to recover quickly from the July 2021 lows, rising back above $40K in September 2021. This recovery was fueled by a drop in the Bitcoin UTXO Block P/L Count Ratio Model to 19.2, a level that had previously signaled the bottom during the March 2020 crypto crash.

As this indicator dropped below 20, it coincided with the final stage of the 2021 cycle correction, setting the stage for a swift recovery in the latter half of 2021.

Bitcoin Still Down 29% From ATH

Bitcoin’s downtrend accelerated after failing to maintain the $100K level, confirming a bearish trend with a decisive break below $90K.

From its all-time high of $109K reached in January, Bitcoin has declined by over 29%, leaving investors searching for signs of a bottom and a potential recovery.

Adding to the uncertainty in the market are ongoing trade war tensions between the U.S. and major global economies, including Europe, China, and Canada. These geopolitical events have implications for macroeconomic stability and could influence investor risk appetite.

Moreover, macroeconomic instability, evident in tight monetary policies and rising inflation concerns, has contributed to increased volatility in risk assets like crypto and U.S. stocks.

In the present market conditions, investors are closely following technical indicators and macroeconomic data to anticipate Bitcoin’s next move, which could have broader implications for the crypto sphere.