Bitcoin is at a critical juncture after experiencing an 18% price collapse in less than a week. The market is facing extreme fear and uncertainty, with many investors speculating about whether BTC’s bull cycle is over. However, despite the sharp decline, bulls have managed to hold key levels above $80K, preventing further downside for now.
As traders closely monitor Bitcoin’s next move, leverage in the futures market remains under control. Key metrics from CryptoQuant reveal that the Estimated Leverage Ratio (ELR) on major futures exchanges does not indicate a significant buildup of high-leverage positions. This suggests that speculative trader activity has cooled off, reducing the chances of sudden liquidations and extreme price swings.
With Bitcoin stabilizing above $80K, all eyes are on whether bulls can push the price back above $90K or if another wave of selling pressure will take BTC into lower demand levels. Market participants are preparing for high volatility, as BTC enters a crucial phase that will determine the short-term trend. The coming days will be critical in deciding whether BTC can recover or if further downside is inevitable.
Bitcoin Faces Risk Of Further Selling Pressure
Bitcoin has been caught in a downward spiral, with continued selling pressure and uncertainty dominating the market. After dropping over 18% in less than a week, BTC now struggles to find strong buying support as analysts remain divided on its next move. Some predict further declines, while others believe that once Bitcoin reclaims the $90K level, a fast recovery rally could take shape.
Amid the uncertainty, analyst Axel Adler shared key insights on X, revealing that the Estimated Leverage Ratio (ELR) on major futures exchanges does not show a significant buildup of high-leverage positions. This suggests that speculative traders have stepped away, lowering the risk of sudden liquidations and extreme volatility.
Another key factor to consider is market activity during the weekends, which historically sees lower trading volumes. This further reduces the chances of major price swings, allowing the market to stabilize before determining its next direction. However, if BTC fails to hold the $80K support level, another wave of selling pressure could take Bitcoin into lower demand zones.
The coming days will be crucial, as traders await confirmation on whether Bitcoin can recover or if another drop is inevitable.
BTC Price Struggles Below $90K
Bitcoin is currently trading at $86,000 after enduring several days of intense selling pressure. The price has failed to reclaim key resistance levels, leaving investors uncertain about BTC’s next move. Bulls must push BTC above $90K to confirm a recovery rally, but holding above $85K is crucial to maintaining short-term strength.
If BTC stays above $85K, a gradual recovery could take shape, allowing buyers to regain control and push prices higher. However, failure to hold this level could open the door for further declines. A drop below $85K would expose BTC to more downside risk, with $80K acting as the next key support level. If this area fails to hold, Bitcoin could experience a deeper correction, leading to even lower demand zones.
Traders and analysts are closely watching the $85K–$90K range, as BTC remains at a critical inflection point. The coming days will be crucial in determining whether Bitcoin can regain momentum or if bears will continue to dominate the market. Breaking back above $90K could signal the end of the recent downtrend, while further losses could extend the correction even deeper.
Featured image from Dall-E, chart from TradingView
