Bitcoin (BTC) is going through a tough time right now, facing ongoing resistance at the $85,000 mark. The cryptocurrency has been on a bearish trend, failing to regain bullish momentum. A few weeks of price action later and we’re looking at the possibility of a bearish retest to lower support levels should this bearish trend continue.

The week started with a big shake, with BTC crashing down to $74,508, a new year-to-date low. Despite attempts to recover, Bitcoin has faced multiple rejections at its 200-day Exponential Moving Average (EMA), hovering around $85,000 since Sunday. As such, this resistance level continues to be a major hurdle for any bullish short-term momentum. As of Wednesday, the price is stabilizing around $83,500, reflecting ongoing market uncertainty.

On Friday, BTC was able to push its recovery run to nearly $82,500, marking a day of mostly upward movement. These positives have not been enough to provide sustained support amid the dominant bearish sentiment. On Tuesday, traders attempted yet again to pump above the 200-day EMA at $85,000. This effort did not succeed and resulted in a 1.12% drop. The ongoing tug-of-war between buyers and sellers remains the key theme in Bitcoin’s price action.

Technical Indicators Signal Bearish Momentum

Noteworthy, the Relative Strength Index (RSI) on the daily chart has fallen below 50, the neutral level. This aggressive move up signals an increase in bearish momentum. For this bullish trend to resume, the RSI needs to rise back above this neutral threshold. This technical price indicator reflects the market’s buying and selling pressure. At present, this is a sign that selling pressure is dominating.

The 200-day EMA at $85,000 is the real resistance monster here. Continued defeats at this magnitude only serve to further illuminate the resolve and power of the opposition. In both cases, a breakout above $85,000 would provide a reliable signal for a bullish reversal. Such a move could lay important groundwork for additional progress.

Any daily closing above $85,000 may be all it takes to trigger a firecracker bullish rally. This increase should push the price closer to the important psychological benchmark at $90,000. If the bulls achieve another close above $90,000 that could prolong the uptrend even further and possibly test the March 2 high of $95,000. These price points represent important support and resistance regions that may determine the near-term path of Bitcoin.

Market Capitalization Declines Amid Price Volatility

This recent price volatility has caused Bitcoin’s overall market capitalization to take a nearly $600 billion hit. The overall capitalization declined 3.2% to $2.736 trillion, mirroring the wider market’s reaction to Bitcoin’s challenges. This drop represents a major blow to investor faith, at least in the short term, as the price runs into major resistance.

If the bearish trend continues as it has been, Bitcoin has its next daily support rate at $78,258 to retest. This line serves as an important zone of support where purchasing demand could resurface, stopping any further downward movement in its tracks. Given the downside risk in short term, monitoring this support level will be important.

The current rejection at $85,000 shows that even after this recent impressive rally, the path is still difficult for Bitcoin to regain a real upward trend. Overcoming this barrier will be key to confirming a more bullish outlook. Until then, the leading cryptocurrency is susceptible to deeper price corrections.

Future Outlook and Key Price Levels

Looking ahead, Bitcoin’s short-term outlook will greatly depend on whether it can cross the $85,000 resistance. A strong bullish breach could spark a massive short-covering rally, bringing in further buyers and sending price soaring toward more bullish targets. On the contrary, persistent rejections at this level might serve to extend the bearish trend.

For bullish investors and traders, the $78,258 support area needs to be watched closely. A move below this level would be indicative of increased downside pressure and might usher in more severe corrections. Remaining above this threshold might establish a floor for an eventual rebound.