Bitcoin is trading below the $85K mark as the entire market struggles to hold above key demand levels. The recent sell-off has triggered panic selling and increased speculation about the future of BTC, with many investors fearing that a prolonged bear market could be on the horizon. The rapid price drop has shaken confidence, and sentiment remains deeply bearish across the crypto industry.
Key data from Coinglass reveals that BTC’s Coinbase Premium has retreated into the negative territory recently. This indicates a surge in spot selling over the past few days, which aligns with the large ETF outflows and overall bearish price action. Historically, a negative Coinbase Premium suggests that U.S. investors are offloading BTC at a discount compared to other global exchanges, reinforcing the growing fear in the market.
For Bitcoin to recover, the premium must turn positive again, signaling renewed spot demand. Until then, the market remains fragile, with analysts closely watching whether BTC can reclaim key resistance levels or if further downside is imminent. The coming days will be crucial in determining Bitcoin’s next move as investors await signs of stability amid growing uncertainty.
Bitcoin Continues To Struggle
Bitcoin is trading around $85K as the broader crypto market, particularly altcoins and meme coins, continues to face extreme selling pressure. BTC has lost critical weekly support around the $90K level, and volatility remains a key factor in short-term price action. Bulls must defend current demand zones to prevent further declines and initiate a potential recovery phase.
Crypto analyst Daan shared Coinglass data on X, revealing that BTC’s Coinbase Premium has gone into the negative zone recently. This suggests that a significant amount of spot selling has occurred over the past few days, aligning with large ETF outflows and a prevailing bearish sentiment. Historically, when the Coinbase Premium turns negative, it indicates that US-based traders are offloading BTC at a discount compared to other exchanges, reflecting a lack of confidence in short-term price action.
For Bitcoin to bounce back strongly, the Coinbase Premium must return to positive territory, signaling renewed spot demand. Currently, the premium is attempting to recover following the recent bounce, suggesting that some buying pressure is returning. However, Daan cautions that he will be monitoring this trend closely to determine whether it sustains over the coming days.
The next key resistance levels lie around $88K–$90K, and a push above these levels could confirm a bullish recovery. However, if selling pressure persists and BTC fails to reclaim lost ground, the price may continue consolidating or even drop further. The coming days will be crucial in defining Bitcoin’s next move as the market navigates ongoing volatility and uncertainty.
BTC Price Action
Bitcoin is trading at $84,900, sitting below the 200-day exponential moving average (EMA) but still holding above the 200-day moving average (MA). The price has dropped 18% since Monday, marking one of the most significant corrections of the year. Bulls are struggling to reclaim key demand levels, and market sentiment remains cautious as investors monitor price action for signs of a recovery.
If BTC holds above the $85K level in the coming days, bulls could attempt to push the price toward $88K, a short-term resistance level that needs to be reclaimed for a potential recovery rally. However, the lack of strong demand at current levels is a concern, as bearish momentum has dominated the market in recent sessions.
On the downside, a break below $85K would indicate further weakness and could lead to a deeper correction into lower demand levels. Key support areas to watch in case of a breakdown include $82K and $80K, where buyers may look to step in. The coming days will be crucial in determining whether BTC can stabilize and initiate a rebound or if further downside movement is on the horizon.
Featured image from Dall-E, chart from TradingView
