Bitcoin has been struggling to surpass the significant $85,000 mark for the past two months, leading to pressure on long-term holders as their profits decline. The MVRV Long/Short Difference, a key market sentiment indicator, hit a two-year low, indicating unfavorable conditions for long-term holders. Short-term holders are now taking advantage of price fluctuations as long-term holders hold back on further investments.

Technical indicators and the HODLer net position change suggest a bearish sentiment in the market. Long-term holders have sold a notable amount of their Bitcoin holdings, worth over $550 million, in the last two weeks. This shift in sentiment from confidence to caution among long-term holders may delay Bitcoin's recovery and contribute to price stagnation, limiting market activity.

Bitcoin is currently trading at $84,421, with $82,619 acting as a crucial support level. Failure to break above the $85,000 resistance level may increase downward pressure, potentially leading to a decline to the next psychological support level at $80,000. If support at $78,841 is lost, it could signify a further downturn, deepening the bearish outlook for Bitcoin.

On the upside, breaching and maintaining support at $85,000 could trigger a recovery towards $86,848 and potentially up to $89,800, reversing the bearish trend and restoring investor confidence in Bitcoin.