Is Bitcoin Heading Toward a Bear Market or a Bullish Reversal?

• Bulls have failed to push Bitcoin above key resistance levels, keeping the market range-bound.
• After a 29% drop since January, analysts are eyeing key indicators to predict if a bear market is forming.
• To confirm a recovery, Bitcoin must break past the $85,500–$86,000 resistance zone and reach higher levels.

Bitcoin (BTC) has remained under immense pressure below key levels as the bulls have not been able to kick-start a recovery rally. On X post on Saturday, Daan Crypto Trades predicted that Bitcoin’s price may not predictably move up or down this weekend and may range. As volatility remains relatively low and there is less news flow, prospects for violent, low – movement appear high.

Bitcoin’s Decline Since January

Currently, BTC was already in descent from the record high in January and is down now more than 29% then the subsequent peak. This situation has elicited mixed feelings with some analysts arguing that a bear market may be emerging. Currently both investors and traders are paying a lot of attention to the indicators so as to decipher whether the trend is set to reverse.

However there are some indications which points to the fact that BTC may be preparing for a change. MVRV momentum is almost overbought and is approaching a potential golden cross pattern with the 180-day SMA on the chart. In the past, this has been associated with a change in trend towards the higher levels in the BTC price index. Ali Martinez stated that this may cause a change in the market direction if it occurs.

Yet, here are some challenges that under current and future scenarious have Bitcoin: Currently, the price is kept below several key levels which are $85,500 – $86,000 – the 200 SMA and the 200 EMA. Such a scenario shows that, with Bitcoin’s bulls yet to push past these levels, failure to break the levels indicates that there is a possibility of a recovery rally towards previous higher levels.

Bulls Struggle to Break Key Barriers

Bitcoin is now at $84,467, which is still below the critical $88,000–$90,000 mark. This is a major hurdle for the bulls to overcome. These levels are crucial in the present trading because traders are looking for the break out. If it managed to overcome these hurdles, then this will be the signal that the recent decline is over and a new upward movement begins.

Currently, the attitude of investors is rather passive and waiting for positive changes. While most of the technical signs point towards a probable shift in the prevailing market trend, it is cardinal for Bitcoin to defend current price levels and break past specific barriers. The next several days will tell whether the key levels are going to provide Bitcoin with the ability to regain the upward movement or continue to be range-bound.