Bitcoin’s price remains below the critical $85,000 level, struggling to gain upward momentum as selling pressure increases.
The Coin Days Destroyed (CDD) metric reveals a troubling trend. Short-term holders are liquidating nearly 10,000 BTC daily, contributing to market uncertainty.
Currently trading at $83,184, Bitcoin risks further declines if it fails to reclaim key resistance levels. The $82,761 support level remains a crucial threshold that could determine its next move.
Increased Selling Pressure Weakens Market Sentiment
Persistent sell-offs from recent market entrants indicate a lack of confidence in Bitcoin’s short-term stability.
This situation is worsened by high volatility, reduced demand, and tighter liquidity. These factors collectively hinder Bitcoin’s ability to sustain meaningful accumulation.
Without renewed buying interest, Bitcoin faces a strong risk of further price drops, keeping traders cautious.
Market Fear Grows as Bullish Signals Fade
The absence of significant accumulation has led to widespread fear within the digital asset community.
Without clear bullish indicators, Bitcoin remains vulnerable to sharp price corrections. Increasing seller pressure makes it difficult for prices to stabilize.
Trade War Concerns Add to Market Uncertainty
Despite weaker-than-expected U.S. inflation data, Bitcoin struggled to maintain gains due to concerns over a worsening trade war.
February’s Consumer Price Index (CPI) rose 2.8%, below the expected 2.9%. Core CPI, which excludes food and energy, dropped to 3.1%, slightly better than the forecast of 3.2%.
In response, traders increased bets on Federal Reserve rate cuts. Market probabilities for a rate cut in May jumped to 31.4%, up from 9% last month. Expectations for three rate cuts by year-end climbed to 32.5%, while the chances of four cuts surged from 1% to 21%.
However, ongoing tariff disputes complicate the economic outlook.
- Canada imposed $21 billion in tariffs on U.S. exports following Washington’s steel and aluminum tariffs.
- The European Union followed suit, adding $28 billion in additional tariffs on American goods.
These growing trade tensions raise inflationary risks and could complicate Federal Reserve policies, further impacting Bitcoin’s market movement.
Key Economic Factors Investors Should Watch
According to The Kobeissi Letter, the U.S. faces a $9.2 trillion debt refinancing challenge in 2025.
Without lower interest rates, borrowing costs could surge, worsening the national debt crisis, which now exceeds $36 trillion.
Cryptocurrency Traders Show Signs of Capitulation
On-chain data suggests that cryptocurrency traders are losing confidence.
According to Santiment, trading activity across the crypto market has declined since its late-February peak.
Over the past two weeks, market capitalization losses have left traders hesitant, with signs of exhaustion and capitulation becoming more apparent.
Even Bitcoin’s CPI-driven bounce failed to spark meaningful trading activity.
A drop in trading volume indicates weak market momentum, making Bitcoin vulnerable to further losses.
Institutional and retail traders appear to be waiting for a stronger market signal before making large moves. Until volume picks up, caution will likely dominate the market.
