TLDR
Bitcoin currently trading below $85,000, consolidating after recent decline from $86,500
Technical indicators show potential for upward movement if BTC clears $85,000 resistance
Traders are working to recapture the critical $90,000 level first breached in late 2024
Fed Chair Powell dampened hopes for early rate cuts, affecting crypto market sentiment
Mid-sized investors (wallets with 10-100 BTC) have increased positions by 1.2% over past three weeks
Bitcoin price is currently in a consolidation phase below the $85,000 mark after experiencing a recent decline. The leading cryptocurrency has been trading in a range-bound pattern with clear resistance and support levels identified by analysts. While recent Fed comments have dampened immediate growth prospects, technical indicators suggest BTC might be preparing for an upward move.
Bitcoin began a fresh decline after struggling near the $86,500 zone, dropping below both the $85,500 and $85,000 levels. This movement placed BTC into what some traders consider a short-term bearish zone. The price tested support around $83,200, forming a low at $83,171 before recovering some losses.
Currently trading below both $85,000 and the 100-hour Simple Moving Average, Bitcoin faces immediate resistance near $84,750. A bearish trend line has formed with resistance at $84,800 on the hourly chart of the BTC/USD pair.
Key Support and Resistance Levels
For Bitcoin to begin a fresh increase, it needs to clear the $85,000 resistance zone. The first key resistance lies near $85,150, followed by $85,500. A successful break above $85,500 could send the price higher, potentially testing the $85,800 level before approaching $86,400.
On the downside, immediate support exists near $83,900, with major support at $83,200. If these levels fail to hold, Bitcoin could decline further toward $82,200, with the main support sitting at $80,800.
Technical indicators present a mixed picture. The hourly MACD is losing pace in the bearish zone, while the RSI hovers near the 50 level, suggesting neither strong bullish nor bearish momentum.
The cryptocurrency markets saw steady rises in Asian morning hours on Thursday after a sell-off the previous night. Bitcoin added 2% in 24 hours, touching nearly $84,500. Other major cryptocurrencies including Ethereum, XRP, Dogecoin, and BNB gained between 1-3%, with Solana’s SOL leading the pack with a 6% increase.
Institutional Interest and Market Sentiment
After experiencing unprecedented volatility in early 2025, Bitcoin traders are deploying strategies to recapture the critical $90,000 price level. This psychologically important threshold, first reached in late 2024, represents both a numerical milestone and an indicator of market strength and institutional confidence.
Order book analysis on Binance reveals strong buy walls at the $86,000 and $88,500 levels, suggesting support that could propel Bitcoin toward the $90,000 target. Options market data supports bullish sentiment, with call options at the $95,000 strike price experiencing a 34% increase in open interest over the past ten days.
Wallet addresses holding between 10-100 BTC have increased their positions by approximately 1.2% over the past three weeks, signaling growing confidence among mid-sized investors. This accumulation pattern resembles behavior observed during previous successful price recoveries.
Macroeconomic Factors Influencing Price
Fed Chair Jerome Powell recently dashed hopes for early interest rate cuts, noting that the Federal Reserve needs more time to see the effects of tariffs play out in the global economy. The economic impact will likely include higher inflation and slower growth, hinting at potential “stagflation.”
“Traders had been hoping for the Fed to come in with early rate cuts to bolster markets, but it looks like that’s not going to happen anytime soon,” said Jeff Mei, COO at BTSE.
“In the short term, we expect Bitcoin to continue to trade in the $80,000 – $90,000 range until we see more clarity on tariff negotiations and rate cuts.”
The approval of additional Bitcoin ETF products has introduced approximately $4.2 billion in new capital flows to the ecosystem since February. Corporate treasury diversification continues to provide support, with several Fortune 500 companies announcing Bitcoin allocation increases during recent earnings calls.
Despite positive indicators, obstacles remain before Bitcoin can firmly establish itself above $90,000. Regulatory uncertainty continues to affect certain market segments, with proposed reporting requirements potentially impacting market liquidity.
Resistance around $89,500 has proven stubborn, with sell pressure emerging when prices approach this zone. According to market analyst Marcus Thompson, “The $89,000-$90,000 range has become a psychological battleground, with long-term holders historically taking profits at these levels.”
Analysts suggest that as long as Bitcoin can hold above $81,000, the technical outlook remains constructive in the near term. Market focus has shifted to details on upcoming trade deals and the corporate earnings season starting next week.
With institutional adoption, favorable macro conditions, and positive technical indicators, the market structure appears increasingly supportive of continued upward momentum. Traders continue monitoring key support and resistance levels while positioning for potential price action in the coming weeks.
