Bitcoin is trading below key resistance levels as bulls proceed to struggle to ignite a recovery rally. Since peaking in January, BTC has been trapped in a persistent downtrend, losing over 29% from its all-time high. This sustained weakness has sparked growing concerns amongst investors and analysts, with some warning that a bear market could also be underway.

Despite the cautious sentiment, there continues to be hope amongst market watchers who consider Bitcoin is undergoing a healthy correction inside a broader bull cycle. They argue that the recent dip could present a long-term buying opportunity, especially if key support levels hold and bullish signals emerge in the approaching days.

One such signal may come from the MVRV momentum indicator and the 180-day easy moving average (SMA). In line with data from Glassnode, the 2 metrics are approaching a possible golden cross—an event historically related to major upward moves in Bitcoin’s price. If this crossover is confirmed, it could mark a shift in market momentum and signal that BTC is preparing for an additional leg up in its current cycle.

Bitcoin Inches Higher As Analysts Watch For Bullish Signal

Bitcoin is trading above crucial demand levels after a pointy recovery from Tuesday’s $81,000 low. The world’s largest cryptocurrency has bounced over 7% since then, providing a glimmer of hope for bulls after weeks of relentless selling pressure and macro-driven uncertainty. Since its all-time high near $109,000 in January, Bitcoin has lost greater than 29% of its value, triggering debates amongst analysts about whether the market continues to be in a bull cycle or at the beginning of a recent bearish phase.

Despite the doubts, key technical indicators may suggest a shift in sentiment. In line with top analyst Ali Martinez, the MVRV momentum indicator and the 180-day easy moving average (SMA) are approaching a golden cross—a historically bullish signal that usually precedes strong upward trends. This crossover, if confirmed, would mark a possible inflection point and reinforce the concept the recent correction could also be a part of a broader bull run slightly than a whole trend reversal.

Still, Bitcoin has work to do. Bulls must hold current levels and push above the $88K–$90K zone to verify a recovery and retest the previous highs. For now, traders are cautiously optimistic, watching on-chain metrics and technical indicators closely for the subsequent big move.

BTC Price Struggles Below Key Averages Amid Uncertainty

Bitcoin is currently trading at $83,900, continuing to hover below critical resistance as bulls try to reclaim momentum. The value has been trapped below the 200-day easy moving average (SMA) and the 200-day exponential moving average (EMA), which now act as key technical barriers near the $85,500–$86,000 range. Reclaiming this level is important for confirming a recovery rally, especially after Bitcoin’s prolonged downtrend since late January.

Despite a 7% bounce from the recent low at $81,000, the market stays cautious. A decisive move above $86,000 would give bulls the strength needed to retest higher levels toward $90K and break the present bearish structure. Nonetheless, with out a strong push above this threshold, Bitcoin risks losing its short-term momentum and slipping back toward lower demand zones.

If the $86K mark continues to reject price motion, a move below $81K could follow, potentially triggering more selling pressure and panic amongst retail investors. The approaching days will likely be critical, as bulls must show strength and defend current levels to avoid further downside. Market participants are closely monitoring each technical indicators and macroeconomic developments for clues on Bitcoin’s next direction.

Featured image from Dall-E, chart from TradingView 

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