In the wake of several days of intense volatility, risk assets showed signs of recovery overnight. Bitcoin (BTC) surged from a 24-hour low of $81,500 to above $88,000 — marking a nearly 10% intraday rebound. This momentum helped ease losses across major U.S. equity indices, with the Nasdaq closing down just 0.35%. As markets recalibrate, all eyes are on Bitcoin’s next move amid growing uncertainty and fierce tug-of-war between bulls and bears.
The Tug-of-War Between Market Sentiment and Macroeconomic Pressures
Recent price action has been anything but clear-cut. Since peaking near $90,000 in late February, Bitcoin has entered a phase of consolidation, caught in a prolonged battle between buyers and sellers. While former President Trump’s pro-crypto rhetoric briefly lifted investor confidence, the rally proved short-lived. Broader macroeconomic headwinds — including inflation concerns, interest rate uncertainty, and regulatory ambiguity — remain significant overhangs.
Ki Young Ju, CEO of CryptoQuant, suggests that Bitcoin may remain range-bound until broader financial market sentiment improves. With unclear regulations, shifting macro conditions, and fluctuating investor psychology, the path forward isn't guaranteed. In the absence of a strong catalyst, BTC is likely to continue trading within a wide band. Investors should stay alert for key technical and on-chain signals that could foreshadow the next directional breakout.
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Can Bulls Regain Control After Losing the $90K Level?
Despite multiple attempts to reclaim momentum, Bitcoin and the broader crypto market continue to face downward pressure. Analysts warn that if bulls fail to regain critical support levels soon, further downside may follow. A sustained break below key zones could accelerate selling and deepen the correction.
However, Ki Young Ju cautions against declaring the end of the bull cycle just yet. On-chain data from CryptoQuant shows relatively neutral activity — no signs of widespread panic or capitulation. This suggests that while short-term sentiment is weak, the underlying bullish structure remains intact. Fundamental drivers also remain strong: more mining equipment is coming online, signaling continued confidence among major players.
Moreover, Ju points out that powerful stakeholders — including early “whale” investors, large-scale mining firms, institutional players, and political figures like Trump — have vested interests in sustaining this cycle. Retail investors typically enter late in the game; their current behavior alone is unlikely to reverse the broader trend.
This doesn’t mean risks are absent. A failure to stabilize could erode confidence and trigger broader deleveraging. But for now, the foundation for long-term growth still stands.
Will History Repeat? $85K Becomes Crucial Liquidity Threshold
Technical analysts are zeroing in on $85,000 as a pivotal level for Bitcoin’s immediate future. TradingView experts emphasize that this price point has repeatedly acted as a psychological and technical battleground over recent weeks.
If Bitcoin fails to hold above $85,000 in the coming days, it may spark a wave of forced liquidations and intensified selling pressure. Such a scenario could confirm bearish momentum and open the door to testing lower supports — potentially revisiting the $81,500 low or even lower.
But there’s another way to look at it.
Quinten, a well-known analyst on X (formerly Twitter), reminds us that history often rhymes. During the previous bull cycle, Bitcoin endured seven major pullbacks: -17%, -17%, -32%, -26%, -28%, -51%, and -25%. Each time, panic spread and headlines screamed “Bitcoin is dead.” Yet each time, BTC recovered and went on to reach new highs.
“Markets don’t move in straight lines. Corrections are not only normal — they’re necessary.”
This current dip might be exactly that: a healthy consolidation phase preparing the ground for the next leg up.
Key Signals Suggest a Potential Bottom Formation
MasterAnanda, a seasoned market observer, highlights several encouraging developments:
- V-shaped recovery: After dipping below $81,500, Bitcoin staged a swift and powerful rebound — a classic sign of bottoming behavior.
- Bull market correction: Sharp pullbacks after strong rallies are typical in healthy bull markets. They help flush out weak hands and reset overbought conditions.
- Accumulation phase: For those who missed earlier entries, this pullback offers a strategic opportunity to accumulate BTC at better prices — what many call a “golden pit.”
- Long-term trend intact: Despite short-term noise, Bitcoin’s upward trajectory remains unchanged. Analysts project renewed momentum in the coming months, with potential runs toward $120,000 by mid-2025.
- Technical support holds: The 200-day moving average (MA200) continues to act as strong support on the daily chart — a historically reliable indicator for long-term trend confirmation.
- Higher lows forming: Price structure shows progressively higher swing lows, reinforcing bullish bias.
- Off-chain readiness: Massive dry powder remains on the sidelines. Once stability returns, institutional and retail inflows could reignite rapid price appreciation.
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Is This the Start of Bitcoin’s Accumulation Phase?
There’s growing consensus that Bitcoin may have found a temporary floor. The market appears to be entering an accumulation phase — where smart money quietly builds positions before the next surge.
While short-term volatility will persist, especially amid macro uncertainty and leveraged trading dynamics, the long-term outlook remains constructive. Seasoned investors understand that every major bull run includes painful drawdowns. Those who stay disciplined often reap the greatest rewards.
Now may be an ideal time to reassess your strategy:
- Consider dollar-cost averaging (DCA) into Bitcoin at current levels.
- Monitor on-chain metrics like exchange outflows and whale accumulation.
- Watch key technical levels: defense of $85K is critical; reclaiming $90K would signal renewed strength.
As we move through 2025, expect increased adoption, deeper institutional involvement, and potentially new all-time highs — provided macro conditions stabilize.
Frequently Asked Questions (FAQ)
Q: What does a 'golden pit' mean in crypto investing?
A: A “golden pit” refers to a temporary price dip during a bull market that presents a low-risk entry point for investors. It's called “golden” because it offers high reward potential with relatively controlled downside.
Q: Why is $85,000 such an important level for Bitcoin?
A: $85,000 serves as both psychological support and a technical threshold backed by historical trading volume and order book depth. A sustained break below could trigger further selling; holding it strengthens the bullish case.
Q: Are we still in a Bitcoin bull market?
A: Yes, most indicators suggest the bull cycle is ongoing. While corrections occur, fundamentals like on-chain activity, adoption trends, and miner behavior still support higher prices over time.
Q: How can I tell if accumulation is happening?
A: Look for rising on-chain transfers to wallets (not exchanges), increasing stablecoin supply on exchanges (indicating buying power), and declining exchange reserves — all signs of accumulation.
Q: What role do macro factors play in Bitcoin’s price?
A: Macroeconomic conditions — such as interest rates, inflation, USD strength, and geopolitical risks — significantly influence investor risk appetite and capital flows into crypto.
Q: Should I buy Bitcoin now or wait for lower prices?
A: Timing the bottom is difficult. Many investors use dollar-cost averaging to reduce risk. Given current support levels and long-term outlook, current prices may represent a strategic entry zone.
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