Bitcoin is trading above the $85,000 mark after days of sideways consolidation below $84,000, finally showing signs of life as bulls attempt to reclaim control. The push above this crucial level has sparked a wave of cautious optimism among investors and analysts, with many speculating that a new rally could be on the horizon—if BTC can sustain upward momentum and break through $90K resistance.
Market sentiment, which had been leaning bearish amid macroeconomic uncertainty and trade war concerns, is gradually shifting. Recent data from CryptoQuant adds to the emerging bullish narrative. The Short-Term Holder Spent Output Profit Ratio (STH SOPR) has now climbed above 1. This indicates that short-term holders—those who acquired BTC within the past 155 days—are selling their coins at a profit.
The next few days will be critical for Bitcoin. A strong move above $90K could confirm the start of a broader recovery. But without follow-through, the market may face renewed volatility as both bulls and bears fight for dominance.
Bitcoin Faces Uncertain Path As Selling Pressure Lingers
Bitcoin is finally back above the $86,000 level after weeks of volatile price action and uncertainty. Bulls have managed to reclaim short-term momentum, and the price is now attempting to establish support before pushing into the $90K resistance zone. Still, despite the recovery, many investors remain skeptical about the strength and sustainability of this move.
Market sentiment remains divided. While some analysts argue that Bitcoin is entering a prolonged 6 to 12-month bear market, others see the current phase as a healthy correction within a broader bullish cycle. This pullback, they argue, is a natural reset of overheated market sentiment following the January all-time high at $109K.
Top analyst Axel Adler shared insights on X, pointing to on-chain data that supports both cautious optimism and short-term caution. According to Adler, the Short-Term Holder Spent Output Profit Ratio (STH SOPR) has recently crossed above 1. This metric shows that BTC holders who acquired their coins in the last 155 days are now selling at a profit. Adler notes that while this won’t necessarily lead to a mass selloff, it does create added pressure that could limit upside momentum in the short term.
The coming days are critical. If Bitcoin holds above $86K and bulls manage to reclaim $90K, the case for a renewed rally strengthens. But failure to maintain this level could open the door to further corrections as sentiment remains fragile.
BTC Price Update: Key Averages Flip to Support
Bitcoin is currently trading at $87,000 after successfully reclaiming the 200-day moving average (MA) and exponential moving average (EMA), both located around $85,500. This is a crucial technical development, as holding above these long-term indicators often signals a shift in trend and renewed bullish momentum. However, bulls must now defend this level as strong support while pushing higher to reclaim the $90,000 mark.
A move above $90K would confirm a short-term uptrend and open the door for Bitcoin to challenge higher supply zones. If momentum continues, it could trigger broader market confidence and further fuel a recovery across the crypto sector. Still, uncertainty lingers, and the price remains vulnerable to downside pressure.
Failure to hold above the 200-day MA and EMA would likely erase the recent gains and send BTC into a deeper correction. A breakdown below $85K could result in a fast move toward lower demand zones, potentially dragging the price below $81K. For now, all eyes are on whether Bitcoin can consolidate above support and build enough strength to target $90K and beyond in the sessions ahead.
Featured image from Dall-E, chart from TradingView
