Bitcoin (BTC) Is Once Again Trading Below the $85,000 Mark After a Series of Wild Price Swings

Bitcoin is once again trading below the $85,000 mark after a series of wild price swings that have left investors uncertain about its next move.

Bitcoin price is once again trading below the $85,000 mark after a series of wild price swings that have left investors uncertain about its next move.

Market volatility surged following President Trump’s announcement that he plans to establish a U.S. strategic crypto reserve, sparking a brief rally that pushed BTC to $95,000 in just hours. However, the momentum was short-lived, as Bitcoin quickly retraced the entire jump, bringing prices back down and reinforcing the ongoing instability in the market.

This rollercoaster price action reflects the current uncertainty surrounding Bitcoin, with traders struggling to determine whether BTC is gearing up for another leg higher or facing further downside pressure. While Trump’s pro-crypto stance briefly lifted sentiment, it wasn’t enough to sustain a breakout, highlighting weakness in overall market conditions.

CryptoQuant CEO Ki Young Ju shared his thoughts on the matter, stating that Bitcoin’s market conditions will likely remain slow until sentiment in the U.S. improves. With regulatory concerns, macroeconomic uncertainty, and shifting investor sentiment, Bitcoin’s ability to sustain higher levels remains in question.

Until stronger catalysts emerge, BTC may continue trading in a volatile, range-bound environment, leaving traders watching for the next decisive move.

Bitcoin Indicators Suggest Bull Cycle Is Still Intact

Bitcoin has struggled below the $90,000 level for days, and now it finds itself even failing to hold above $85,000. The lack of momentum has kept BTC in bearish territory, with bulls needing to step in soon to avoid a deeper decline. Despite several attempts at recovery, Bitcoin and the entire crypto market are still unable to confirm a sustained push higher.

Bulls lost control when BTC dropped below $90,000, and the failure to reclaim this zone has only intensified bearish sentiment, leading many analysts to call for a potential bear market.

However, Ju believes the bull cycle isn’t necessarily over yet. His analysis highlights that on-chain activity remains largely insignificant, and key indicators are neutral, suggesting that the broader bull trend is still intact despite the recent weakness. Additionally, the fundamentals remain strong, with more mining rigs coming online, signaling continued confidence from major players.

Ju also notes that if this cycle were to end here, it would be an unwanted outcome for nearly all major stakeholders—old-cycle and new-cycle whales, mining companies, traditional finance (TradFi) entering crypto, and even Trump’s administration with its new U.S. strategic crypto reserve. Retail traders, often seen as the last participants to join the market in a cycle, are unlikely to be a deciding factor at this stage.

For now, Bitcoin stands at a pivotal moment, with the next few days being crucial for determining whether BTC can reclaim lost ground or if further downside is inevitable. A break below key support levels could confirm a prolonged correction, while a strong recovery could reignite the uptrend.

BTC Testing Crucial Liquidity Levels

Bitcoin is currently changing hands at $83,700 after days of wild price swings above and below $90,000. The market is still exhibiting high volatility as the bulls struggle to regain control.

For Bitcoin to start a meaningful recovery, it needs to reclaim $90,000 as soon as possible. This level serves as the gateway to reversing the recent downtrend and shifting momentum back in favor of the bulls. However, the main level to hold remains $85,000—a critical support that has dictated price action in recent weeks.

If BTC stays below $85,000 for the next few days, it could trigger a massive drop, increasing selling pressure and leading to a deeper correction. This scenario would likely confirm extended bearish momentum, putting Bitcoin at risk of testing lower support levels.

For now, traders are keenly watching BTC’s ability to either sustain gains or break lower. If Bitcoin can push back above $85,000, it could prevent further downside and provide some short-term stability.

But failure to hold this level could accelerate the bearish trend, leaving BTC vulnerable to further declines in the coming days as traders react to new price lows.