Bitcoin Consolidates As Macroeconomic Tensions Shape Market Outlook

Bitcoin is now closely tracking the broader macroeconomic narrative, with the escalating trade tensions between the US and China weighing heavily on global market sentiment.

Bitcoin is set to close another week below the critical $90,000 level, fueling bearish sentiment across the market. Despite a short-term bounce earlier in the week, the inability to reclaim higher ground continues to worry investors.

Global tensions remain elevated as US President Donald Trump intensifies his trade war with China. Although a 90-day tariff pause was granted to all countries except China last week, uncertainty lingers, and markets remain on edge.

Trade relations between the U.S. and China continue to define broader economic sentiment, ultimately affecting high-risk assets like Bitcoin.

Many believe that the low volatility may not last much longer. Top analyst Big Cheds shared a technical chart on X showing that Bitcoin’s 1-hour Bollinger Bands are now tightening—a classic signal that a major move may be imminent. These “pinching” bands typically suggest compression in price action, often preceding a breakout or breakdown.

With BTC stuck in a narrow range for several days, traders are bracing for sharp movement in either direction. Whether this upcoming move leads to a bullish reversal or further downside remains uncertain, but current conditions suggest that volatility is set to return in the coming sessions.

Bitcoin Consolidates As Macroeconomic Tensions Shape Market Outlook

Bitcoin is closely tracking the broader macroeconomic narrative, with the escalating trade tensions between the U.S. and China heavily influencing global market sentiment. The threat of a global recession is also growing as both nations double down on tariff measures, creating an unstable environment for risk assets.

In this backdrop, Bitcoin has entered a consolidation phase after enduring weeks of aggressive selling pressure and heightened uncertainty.

Currently trading below $86,000 but holding firm above the $82,000-$81,000 support zone, BTC is navigating a tight range with no clear direction.

Analysts are increasingly divided, with some warning that BTC may have already entered a bear market, given the failed expectations of a bullish breakout this year. The market’s inability to reclaim key moving averages has further amplified those fears.

However, there is still a pocket of bullish optimism, with many investors believing that Bitcoin could rally above the $100,000 mark once macro conditions stabilize and capital returns to high-conviction assets.

To this point, Cheds noted that Bitcoin’s 1-hour Bollinger Bands are now “pinching,” a technical setup that usually precedes significant price moves.

As volatility compresses and external economic factors continue to dominate headlines, the coming days may determine Bitcoin’s next major leg.

Price Struggles Below $90K As Weekly Close Looms

Bitcoin is set to confirm its seventh consecutive weekly close below the $90,000 mark as the apex cryptocurrency faces another decisive test.

Despite a short-term bounce earlier in the week, the inability of BTC to reclaim higher ground continues to worry investors. A failure to break above the $90K barrier could result in further weakness, setting the stage for a sharp retracement toward the $80K-$78K region.

Conversely, a decisive push above this zone, especially with strong volume and follow-through, could propel Bitcoin directly toward the $95K level, potentially reigniting bullish momentum. However, with market volatility still muted and macroeconomic uncertainty pressing on investor sentiment, BTC remains range-bound and indecisive.

Only time will tell whether buyers or sellers will gain the upper hand as the market eagerly awaits the outcome of this crucial battle.