Bitcoin (BTC) Under Pressure as Bearish Momentum Builds

Bitcoin (BTC) is once again under pressure, trading below crucial demand levels as bearish momentum builds.

Bitcoin (BTC) is trading below crucial demand levels as bearish momentum builds. The cryptocurrency is now below $85,000, having fallen from a high of $106,000 earlier in 2024.

Bitcoin price is currently consolidating after dropping below a key technical support zone. The 200-day moving average (MA) and 200-day exponential moving average (EMA) previously aligned around the $85,500 level, offering support to buyers. However, BTC broke below this zone, weakening the broader market structure and placing the cryptocurrency in a vulnerable position.

As Bitcoin price drops, momentum is shifting in favor of the bears. Traders and analysts are now focused on the next resistance zones that will likely determine the short-term direction of the market. According to on-chain data from CryptoQuant, Bitcoin now faces three significant resistance levels.

The first is at $89,000, which represents the realized price for short-term holders in the 3–6-month range. This level is closely watched by technical traders, as it can indicate the average price at which short-term holders acquired their BTC.

The second key level is $90,000, the overall realized price for all short-term holders. This measure takes into account all short-term holders, providing a broader perspective on the average price paid.

Finally, the $95,000 level marks the 111-day Simple Moving Average (SMA), which has historically acted as a strong barrier during trending markets. This SMA is commonly used by technical traders to identify long-term trends and potential turning points.

Bitcoin bulls are trying to reclaim a crucial technical resistance level as the cryptocurrency faces a critical juncture. According to top analyst Axel Adler, Bitcoin must overcome three key resistance points to regain momentum.

As shared by Adler on X, previously Twitter, Bitcoin currently faces three critical technical resistance levels. The first level is at $89,000, which represents the 3–6-month Short-Term Holders’ Realized Price. This level is closely related to the average price at which short-term holders, who typically hold coins for a few months, acquired their BTC.

The second key level is at $90,000, which is the overall Realized Price for all Short-Term Holders. This measure takes into account all short-term holders, providing a broader perspective on the average price paid.

Finally, the $95,000 level aligns with the 111-day Simple Moving Average (SMA), which has historically acted as a strong barrier during trending markets. This SMA is commonly used by technical traders to identify long-term trends and potential turning points.

The analyst explained that a successful breakout above these resistance zones would likely confirm strength in the current bullish trend and signal a potential reversal. However, until these levels are reclaimed, Bitcoin remains vulnerable. The coming days will be crucial as bulls attempt to regain control and restore confidence across the crypto market. If they fail, deeper losses could follow — pushing BTC further away from its recent highs.