Bitcoin struggles below $85,000 amid rising sell-off pressure

Coin Days Destroyed metrics indicate a troubling trend, with short-term holders liquidating nearly 10,000 BTC daily amid ongoing uncertainty.

Currently trading at $83,184, Bitcoin faces a potential downward movement if it fails to reclaim crucial resistance levels, particularly with $82,761 acting as a pivotal support.

Persistent selling pressure, especially from recent market entrants seeking to liquidate their holdings, highlights the challenges Bitcoin faces.

This situation is exacerbated by heightened volatility, reduced demand, and tighter liquidity, all of which collectively hinder substantial accumulation. Without renewed buying interest, Bitcoin confronts a significant risk of further price declines.

The absence of noteworthy accumulation contributes to a pervasive sense of fear within the digital asset community, further fueled by a lack of definitive bullish signals. As seller pressure continues to mount, Bitcoin remains vulnerable to damaging price dips.

Despite lower-than-expected U.S. inflation data, Bitcoin struggled to maintain gains as trade war concerns weighed on sentiment.

In response to U.S. steel and aluminum tariffs, Canada recently imposed $21 billion in tariffs on U.S. exports. The European Union followed suit, imposing additional tariffs on American goods valued at $28 billion. There is growing concern that rising trade disputes may increase inflationary pressures and complicate the Federal Reserve’s decision-making.

According to The Kobeissi Letter, the U.S. faces a $9.2 trillion debt refinancing challenge in 2025.

This type of volume decline typically indicates weak market momentum amidst small price recoveries. Gains can swiftly wane in the absence of strong buying interest, leaving prices open to further declines. Retail and institutional traders appear to be in a holding pattern, waiting for the other to move. Until volume picks up meaningfully, caution is likely to dominate.