Bitcoin’s price faces an ever-deepening crypto winter, finding it increasingly difficult to break free from a bearish trend as investor sentiment continues to falter. The leading cryptocurrency has succumbed to a bear trend in the last three months. This month, it had three failed attempts to breach the $85,000 resistance wall. Bitcoin’s broader macro momentum indicates that participants in the market are skittish. Engagement on the network has decreased, as active addresses on the Bitcoin network have fallen to a two-month low. Still priced at $83,768, Bitcoin’s future is unclear as bearish sentiment still hangs over the market.
Resistance at $85,000
Bitcoin has faced major pressure at the $85,000 level, a level it has twice failed and rejected this past month. We know this barrier is hard to overcome. It only adds to the lack of progress and increase investor concerns over the cryptocurrency’s limited short-term prospects. The resistance is proving to be very strong, which has increased the bearish sentiment. This, in turn, means that Bitcoin cannot start a new long-term bullish cycle.
If Bitcoin successfully breaks the important resistance level of $85,000, it may initiate a surge toward the next resistance level of $87,344. If $85,000 is successfully breached, the bearish outlook will be rendered moot, possibly sending Bitcoin further up to the resistance level of $89,800.
Bearish Sentiment and Potential Downward Trajectory
Overall sentiment in the Bitcoin market is very much bearish with fear in the investors still at its peak. This fear is reflected in the reduced use of the Bitcoin network. The cryptocurrency is having a tough time holding onto its new gains long term. The market's overall hesitation underscores the uncertainty surrounding Bitcoin's immediate future.
Should the bearish sentiment continue, Bitcoin may drop below the immediate support at $82,619. A fall to $78,481 seems possible, continuing the downward trend and worsening losses for investors still holding on.
Reduced Network Engagement
Active addresses on the Bitcoin network are at a close to two month low, implying less user participation. This decline in network activity indicates that investors have lost confidence. Perhaps they’d rather trade their assets less frequently and maintain a long-term position in them. This diminished engagement only adds to the prevailing bearish sentiment, increasing the difficulty for Bitcoin to break free from this spell and return to its bullish path.
