Bitcoin is currently facing challenges as its price struggles to break above $85,000 amidst continuous selling pressure. Despite the overall bullish market trends, the short-term outlook for Bitcoin remains bearish, mainly due to uncertain sentiments among a key group of investors.
The ongoing capital outflows from Bitcoin indicate a persistent selling pressure, particularly from recent buyers looking to exit their positions. The combination of high volatility, weak demand, and limited liquidity has hindered substantial accumulation, posing a risk of further price declines without improved buying interest.
The lack of significant accumulation has instilled fear in the market, exacerbated by the absence of clear bullish signals. As selling pressure persists, Bitcoin remains susceptible to price drops.
Bitcoin's short-term holder Coin Days Destroyed (CDD) is witnessing a surge in fear-driven selling activities, reflecting short-term holders offloading their Bitcoin holdings amid market uncertainties. Recent sell-offs by short-term holders have been substantial, with up to 10,000 BTC being sold daily, the highest level since August 2024.
The prevailing market uncertainty is further evident in the recent sell-offs, signaling a lack of confidence in Bitcoin's recovery among investors. Bitcoin's current price of $83,184 is struggling to breach the resistance at $85,000, facing hurdles in gaining momentum and investor confidence to surpass this key level.
Should Bitcoin fail to break above $85,000 and maintain support at $87,041, it risks consolidating within its current range or dropping below the critical support level of $82,761. A break below this level could potentially drive Bitcoin down to $80,000 or lower, prolonging the recovery timeline.
On the bright side, a successful breach of the $85,000 resistance and support consolidation at $87,041 could signal a reversal from the bearish trend, confirming a broadening descending wedge pattern and anticipating a recovery rally. A breakthrough above $89,800 would invalidate the bearish outlook, paving the way for sustained upward momentum in Bitcoin's price.