Bitcoin has been encountering consistent challenges in recent months, failing to meet expectations in its recovery efforts. The leading cryptocurrency, currently valued at $83,768, has been facing resistance at the $85,000 mark on multiple occasions this month. The inability to surpass this resistance level is leading to increased uncertainty among investors.
Concerns among Bitcoin investors are evident, as indicated by the Fear and Greed index showing a prevailing sense of fear among BTC holders since early March. The market's unresponsiveness to positive signals has intensified this fear. With Bitcoin's price remaining stagnant and struggling to regain bullish momentum, investor confidence is diminishing.
This prevailing atmosphere is also reflected in the general sentiment, with many investors hesitating to make significant moves in the market. The trend suggests that Bitcoin holders are steering clear of riskier investments and are refraining from active participation in the market.
Additionally, the macro momentum of Bitcoin demonstrates a hesitancy among market participants, with active addresses on the Bitcoin network reaching a low point not seen in nearly two months. This decrease indicates that holders are stepping back and showing less inclination to engage in transactions or move their coins, highlighting the uncertainty regarding the market's future direction.
The ongoing downtrend of Bitcoin, with its current price hovering around $83,768, has persisted for three months. Despite multiple attempts to breach the $85,000 resistance level, Bitcoin has been unable to sustain upward momentum. The repeated rejections at this level signal notable resistance, potentially leading to further price stagnation.
In the event that bearish sentiment persists and investor fear remains high, there is a possibility that Bitcoin could dip below the current support level of $82,619, potentially dropping to $78,481. Such a scenario could extend the downtrend and increase losses for holders, exacerbating the pervasive market uncertainty.
On the other hand, if Bitcoin successfully surpasses the critical resistance level of $85,000, it could trigger a rally towards $87,344. Breaking through this barrier might invalidate the current bearish perspective, propelling Bitcoin towards $89,800 and offering a new perspective on the cryptocurrency's outlook.