Bitcoin has plunged into bear market territory, shedding over 29% of its value since January as macroeconomic uncertainty and trade war fears rattle cryptocurrency and equity markets alike. The leading cryptocurrency currently trades at $83,500, having lost the critical 200-day moving average around $84,300, with traders watching closely for signs of either continued decline or potential recovery.
The downward trend shows no clear signs of reversal yet. Erratic policies by U.S. President Trump, including tariffs and foreign trade decisions, have contributed to broader economic instability and rising recession fears.
Despite widespread negative sentiment, on-chain metrics suggest robust demand for Bitcoin and Ethereum remains intact. Data from CryptoQuant reveals the current spread between stablecoin inflows on the Ethereum network and the inflow of BTC and ETH (selling pressure) now exceeds all previous peaks in coin demand.
"The highest demand for BTC and ETH was recorded near Bitcoin's all-time high at $101K," noted top analyst Axel Adler on X. "Additionally, the metric peaks indicate active accumulation periods in the market." The spread currently remains above all previous highs and sits at one standard deviation from annual average levels.
Historically, such trends have marked key accumulation zones before significant price recoveries. Since September 2023, Bitcoin has demonstrated sustained demand growth, reflected in a metric curve with approximately 45-degree slope.
The ongoing battle between bulls and bears remains intense. For a meaningful recovery, Bitcoin must push decisively above the $86,000 level, which would potentially open the door for a retest of the psychologically important $90,000 mark. Failure to reclaim $86,000 in coming sessions could trigger further selling.
If Bitcoin continues struggling below current levels, a drop below the $80,000 support zone becomes increasingly probable. Breaking this threshold could accelerate the correction, potentially driving prices toward the $75,000-$78,000 demand zone that traders are watching closely.
The cryptocurrency currently remains in a consolidation phase below key moving averages. The lack of bullish momentum raises concerns about additional downside risk, though the strong demand signals provide a counternarrative to purely bearish predictions.
Traders and investors will closely monitor whether Bitcoin can regain lost ground in coming days or if continued selling pressure will push prices toward lower supports. The next several trading sessions will likely prove crucial in determining Bitcoin's short-term trajectory and whether the current bear market signals the end of the bull cycle or merely a correction before continued upward movement.