Bitcoin is hanging around $81,000, but it’s struggling to break through $86,000 – a big resistance level. This lack of upward movement is partly due to global economic worries and trade tensions. The overall market is shaky, and Bitcoin, being a risky asset, is feeling the pinch. Even though it’s holding above a key support level, the uncertainty is keeping traders cautious.
Positive Signals Emerge
Analyst Axel Adler points out some interesting things happening: The average funding rate across major exchanges (Binance, ByBit, OKX, and Deribit) has turned negative. Historically, this has often preceded price increases. Adler notes other positive on-chain signals:
- Companies are buying Bitcoin again.
- Selling pressure is low.
- Experienced investors aren’t selling.
- Long-term holders are accumulating.
These signs suggest the market is calming down after a hectic period.
The Macroeconomic Hurdle
However, Adler stresses that the overall economic situation is the big question mark. Positive news from the Federal Reserve or the government could trigger a massive influx of cash into Bitcoin, especially through ETFs, potentially leading to a significant price jump. He even suggests a potential 50% price increase, aiming for $130,000!
A Crucial Test at $85,000
Bitcoin briefly dipped to $81,000 before recovering to around $85,000. Bulls need to defend this level. To gain real momentum, Bitcoin needs to break above $88,000 – aligning with key moving averages. Success here could lead to a rally towards $90,000 and beyond. Failure, however, could send Bitcoin back below $81,000. The next few days will be crucial in determining Bitcoin’s next move. The market’s volatility and uncertainty mean the situation remains precarious.
