Bitcoin (BTC) Price Struggles To Maintain Upward Momentum, Facing Continued Selling Pressure

Bitcoin's price has been struggling to maintain upward momentum, remaining below $85,00 and facing continued selling pressure.

Bitcoin’s price has been struggling to maintain upward momentum, remaining below the $85,000 mark and facing continued selling pressure. While the broader market still exhibits macro bullish patterns, the short-term outlook for Bitcoin remains bearish.

This is largely due to the sentiment of a key cohort of investors who remain uncertain about Bitcoin’s immediate future.

Bitcoin Faces Challenge In Recovery

Bitcoin’s capital outflows indicate ongoing selling pressure, especially from recent buyers who are now looking to liquidate their positions. The combination of heightened volatility, low demand, and constrained liquidity has stifled meaningful accumulation. Without stronger buying interest, Bitcoin faces a higher risk of further declines.

The inability to generate significant accumulation is contributing to a sense of fear in the market, which is further fueled by a lack of clear bullish signals. As selling pressure continues, Bitcoin remains vulnerable to price dips.

Bitcoin’s short-term holder (STH) Coin Days Destroyed (CDD) is showing a marked increase in fear-driven sell-offs. This indicator tracks when short-term holders decide to sell their Bitcoin, and its surge has been accompanied by an increase in the amount of Bitcoin sold daily. Recent sell-offs have driven STHs to offload up to 10,000 BTC per day, the highest since the August 2024 sell-off.

This behavior is a sign of market uncertainty, with many short-term holders opting to sell during periods of heightened fear. The recent spike in sell-offs, adjusted by the Spent Output Profit Ratio (SOPR), suggests that these investors are not confident in Bitcoin’s recovery.

BTC Price Is Looking To Escape

Bitcoin is currently trading at $83,184, trapped under the key resistance of $85,000. While there is an attempt to recover, the current market conditions, coupled with broader economic factors, suggest that recovery may be difficult to achieve in the short term.

The lack of momentum and investor confidence adds to the challenges Bitcoin faces in surpassing the $85,000 mark.

If Bitcoin fails to break through this resistance level, it could continue consolidating in the range of $80,000 to $85,000, or fall further to test the critical support at $82,761. A drop below this threshold could bring Bitcoin down to $80,000 or even lower, extending the losses and further delaying any recovery efforts.

However, if Bitcoin manages to pierce through the $85,000 barrier and sustain support above $87,041, it would confirm a breakout from the current bearish trend. This would also validate the broadening descending wedge pattern, signaling a potential recovery rally.

A move above $89,800 would likely invalidate the bearish thesis and set the stage for sustained upward momentum.