Bitcoin (BTC) Price Drops Below $85K, Setting the Stage for a Recovery Rally

Bitcoin (BTC) continues to face massive selling pressure, with prices dropping below the $85,000 mark, marking a 12% decline

Bitcoin (BTC) has been encountering substantial selling pressure, causing prices to drop below the $85,000 mark. Since last Friday, this decline has amounted to 12%, setting the stage for another leg down.

As uncertainty hangs over the market, traders are closely observing BTC's next move.

Key on-chain data from CryptoQuant suggests that Bitcoin could be setting up for a recovery rally. The Cumulative Value Days Destroyed (CVDD) indicator, which measures long-term holder behavior and capital inflows, hints at a potential new uptrend for BTC.

If Bitcoin manages to stabilize and reclaim key support levels, it could set the stage for a rally toward a new all-time high of $128,000.

Bitcoin At Critical Turning Point

Bitcoin is at a crucial juncture, with a serious risk of continued correction as bearish sentiment sets in. Many analysts believe that the Bitcoin bull cycle may be over, especially as BTC struggles to stay above $80,000.

Bitcoin is now struggling to stay above the $80,000 zone, having dropped below $85,000 and encountered another leg down as selling pressure intensifies.

However, despite the pessimistic outlook, some analysts believe that a recovery is still possible if Bitcoin can manage to reclaim key levels. Top analyst Ali Martinez shared his thoughts on X, stating that if BTC reclaims $84,000 as support, it could pave the way for a move toward a new all-time high of $128,000.

This suggests that while the market remains fragile, there is still potential for Bitcoin to regain strength if bulls step in at critical price points.

The coming weeks will be crucial in determining the strength or weakness of this cycle. If BTC continues to struggle below key resistance levels, a deeper correction could follow, further fueling bearish sentiment. But if bulls can push BTC back above $84K, it would indicate a shift in momentum, setting the stage for another rally.

With uncertainty reigning over the market, traders will be closely watching to see whether BTC can hold or reclaim support, ultimately deciding whether this cycle is truly over or if another rally is on the horizon.

BTC Struggling To Reclaim $85K

Bitcoin has faced massive selling pressure, with the most significant drop occurring on Sunday, when the price plummeted from $86,000 to $80,000, marking a 7% decline in just a few hours.

This sharp downturn has fueled panic selling among investors as they remain clueless about Bitcoin's short-term direction. To regain control, bulls need to push back and reclaim the $86,000 level.

A strong move past these key resistance levels could restore confidence in the market, signaling that Bitcoin’s correction phase might be coming to an end.

However, failure to break above $86K could keep Bitcoin in the hands of bears, increasing the risk of another leg down. If BTC drops below $80,000, it could test the $78,000 low, which, if breached, may lead to further downside pressure.

With Bitcoin at a critical turning point, the next few trading sessions will determine whether bulls can step up and reclaim key levels, or if bears will continue to push the coin deeper into correction territory.