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Bitcoin is currently trading below the $87,000 level, struggling to find momentum as bearish pressure and market volatility continue to create uncertainty. Despite attempts to stabilize, BTC remains under pressure, with traders looking for signs of a potential trend reversal or deeper correction.

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On Thursday, US President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve, a move that many believed would boost market confidence. However, Bitcoin fell after the announcement as the executive order failed to meet investor expectations, leading to further sell-offs and volatility. The market reaction suggests that traders were expecting more clarity on how the US government plans to manage and utilize the reserve.

Despite the price drop, key on-chain data from Santiment reveals that whales have accumulated over 30,000 Bitcoin in the past two weeks, signaling a strong buying trend. This suggests that large investors are positioning themselves for a potential market shift, even as BTC struggles in the short term.

Bitcoin Fundamentals Differ From Market Sentiment

Bitcoin is struggling to reclaim the $90,000 mark but continues to hold firm above $85,000, a critical support level that could serve as a definitive point of inflection if bulls fail to defend it. With market sentiment still bearish, BTC remains under pressure, unable to generate the momentum needed for a decisive breakout.

The decline in cryptocurrencies has mirrored the downtrend in U.S. stock markets as investors react to fears of a widening global trade war. Macroeconomic uncertainty, combined with ongoing regulatory concerns, has kept risk assets, including Bitcoin, in a volatile state. However, this turbulence could fade if upcoming developments, such as tax cuts and regulatory clarity, provide benefits for investors. These factors could serve as catalysts for renewed confidence in both traditional markets and crypto.

Despite the current weakness, top analyst Ali Martinez shared on-chain data from Santiment, revealing that whales have accumulated over 30,000 Bitcoin in the past two weeks. This strong accumulation trend stands in contrast to the broader market sentiment, which continues to send BTC toward lower levels.

Historically, whale accumulation is a bullish signal, as large investors typically buy during periods of fear and uncertainty to position themselves ahead of the next market move. If Bitcoin maintains support above $85,000 and whales continue to accumulate, a potential recovery could be on the horizon. However, if BTC fails to hold its current range, another leg down toward lower demand zones may follow.

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With Bitcoin’s price action at a critical juncture, the coming days will be key in determining whether BTC can break out above resistance or if bears will regain control and push prices lower.

BTC Holding Above $85K

Bitcoin (BTC) is currently holding above $85,000 despite persistent selling pressure and bulls struggling to reclaim key resistance levels. The market remains highly uncertain, with BTC failing to confirm a move into higher supply zones or a breakdown into lower demand levels.

For bulls to regain momentum, Bitcoin must push above $90,000 with strength and aim for a quick move toward $100,000. A decisive reclaim of these levels would shift sentiment bullish and potentially trigger a new uptrend. However, without a clear breakout, BTC remains vulnerable to further downside pressure.

If Bitcoin fails to hold $90K and loses support at $85K, the market could see another wave of selling, leading to a drop toward $78,000 or lower. This level would be critical, as breaking below it could trigger panic selling and a more extended correction.

Related Reading: U.S. Authorities Hold 187,236 BTC – The Foundation Of A Strategic Bitcoin Reserve?

For now, traders are watching BTC’s ability to defend $85K and push higher. The next few days will be crucial in determining whether Bitcoin can reclaim key resistance levels or if bears will regain control and send the price lower. Uncertainty continues to dominate, keeping both bulls and bears on edge.

Featured image from Dall-E, chart from TradingView

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