Bitcoin Drops Below $85K Amid Increased Selling Pressure
Bitcoin has fallen below $85,000 as selling pressure increases in the crypto market after a brief consolidation near $88,000. Factors influencing this decline include:
- Geopolitical tensions and fragile investor sentiment affecting global markets.
- Weakness in traditional markets impacting the crypto space.
- Analysts monitoring for potential deeper corrections.
Despite the pullback, data from CryptoQuant indicates rapid draining of OTC desk balances, which may suggest increased institutional accumulation. This trend is often associated with larger investors avoiding exchange slippage. Key points include:
- Bitcoin currently holds above $84,000 while struggling to reclaim $90,000.
- Some analysts view this period as a healthy pause, while others predict a deeper correction.
- A declining OTC balance signals rising demand from large buyers.
At $84,100, Bitcoin has lost its 200-day and exponential moving averages, indicating bearish momentum. To regain control, BTC must maintain support above $82,500. If successful, it may target the resistance zone between $89,000 and $91,000. Conversely, failure to hold above $82,000 could lead to intensified selling pressure, potentially dropping below $80,000.
The coming days are critical for Bitcoin's direction as volatility rises and macroeconomic uncertainty persists. Bulls need to act swiftly to re-establish momentum above $85,000.
