Bitcoin is struggling to reclaim the $90,000 level, and market confidence continues to deteriorate as an increasing number of analysts begin to call for a prolonged bear market. Sentiment has turned decisively cautious, with investors reassessing risk exposure and preparing for a potentially challenging period ahead. Despite multiple attempts to stabilize, price action remains compressed, offering little confirmation that bullish momentum is ready to return. More importantly, price is now testing the 100-day moving average (green), which sits just above the current level and has acted as dynamic support throughout much of this cycle. The market’s reaction around this zone is critical. A sustained hold above the 100-day MA could allow Bitcoin to stabilize and form a base, while a decisive breakdown would likely expose the 200-day moving average (red), currently rising near the low $80,000s.Related Reading
Volume dynamics reinforce the cautious outlook. The sell-off from the October peak was accompanied by elevated volume, signaling distribution rather than a shallow pullback. Since then, volume has tapered off, suggesting a lack of aggressive dip-buying interest at current levels.
Structurally, Bitcoin remains in a broader uptrend as long as it holds above the 200-day MA, but the loss of the 50-day and weakening momentum indicate consolidation or further downside risk in the near term. Bulls need a recovery back above $90,000 to regain control and shift sentiment meaningfully.
Featured image from ChatGPT, chart from TradingView.com
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