Bitcoin has been rejected again at the descending resistance level – Is the $78,600 level still valid?

Bitcoin is facing a significant challenge as it struggles to break through important resistance levels while still holding above crucial support levels. The market remains stuck in a narrow range, reflecting the increasing indecisiveness among traders and investors. Uncertainty has become the new norm, with macroeconomic conditions and political developments continuing to cloud sentiment. US President Donald Trump has added volatility to the mix, unsettling financial markets with unpredictable policies and new tariffs. His erratic behavior only exacerbates the fragile mood, pushing risk assets like Bitcoin into deeper consolidation. According to cryptocurrency analyst Carl Runefelt, despite short-term price increases, Bitcoin has once again failed to break through the descending resistance level. This rejection, combined with declining trading volume, is a sign that buyers may be losing strength. Runefelt warns that if the volume continues to dwindle and BTC remains stuck below important levels, the bearish target of $78,600 remains a significant possibility. While the bulls are defending the current support levels, the lack of momentum is raising red flags. Unless Bitcoin can reclaim higher ground soon, the likelihood of a deeper correction will continue to increase — making the coming days crucial for determining the next direction of the market. Bitcoin decreased by 25% compared to the ATH level in January as the sellers tightened their control. Bitcoin has now dropped 25% from its all-time high in January, and buyers are struggling to regain control. After several attempts to reverse the trend, BTC is still holding above the $81,000 level — an important support level — but unable to reclaim the $86,000 mark, which is necessary to confirm any serious recovery. The failure to push the price higher has weakened market confidence, and buyers now find themselves in a difficult position. The macroeconomic instability and fears surrounding escalating trade wars, particularly under the unpredictable policies of U.S. President Donald Trump, have added to market volatility. These factors continue to support the short-selling side, and the pressure on high-risk assets like Bitcoin remains significant. With the broader financial market under pressure, the optimistic sentiment in the cryptocurrency space is quickly fading. Panic is beginning to emerge among some investors as selling pressure shows no signs of slowing down. However, there is still a bit of optimism among market watchers who believe that a recovery could occur after key resistance levels are reclaimed. Runefelt recently shared insights indicating that BTC has not surpassed the declining resistance level — a bearish sign. He also noted that trading volume continues to decrease, a sign that market participation is waning. This lack of volume often precedes significant moves, and in this case, the bearish target of $78,600 remains on the table if buyers cannot regain upward momentum.

Currently, the market is still in a cautious state. The ability of Bitcoin to hold above the support level of 81,000 dollars and attempt to break through the level of 86,000 dollars will be crucial in determining whether a recovery is possible — or whether the next downturn is about to begin. Technical details: Key support levels to hold Bitcoin is currently trading at $83,500 after several days of price fluctuations, instability causing traders to be uncertain about the next direction of the market. Recent fluctuations between key levels have highlighted the hesitation of both buyers and sellers, as neither side can gain complete control. For buyers, the immediate challenge is to reclaim the $85,000 level, in line with the 200-day moving average (MA) in 4 hours. A successful move past this threshold would be an encouraging signal of short-term strength.

In addition, the next important level is 86,000 dollars, where the 4-hour exponential moving average (EMA) is located. Regaining this area will help shift momentum back in favor of the bulls and potentially set the stage for a recovery effort towards 90,000 dollars. However, the most important level in the short term is the support level at 81,000 dollars. This price area has acted as a strong floor in recent weeks and losing it could potentially cause further downward pressure. As macro instability and volatility across the market continue, buyers must defend this support level while attempting to reclaim the moving averages above. The upcoming trading sessions will be crucial in determining whether Bitcoin can recover or slide deeper into the correction zone.