Bitcoin Price Analysis: BTC Struggles To Reclaim $85,000 As Powell’s Comments Rattle Markets
Bitcoin (BTC) is struggling to reclaim $80,000 after markets registered a substantial drop on Wednesday after Federal Reserve Chair Jerome Powell flagged concerns about inflation and slowing growth due to President Trump’s tariff strategies. However, while the flagship cryptocurrency’s momentum has waned, it has shown considerable resilience to maintain its position above $80,000.
BTC had dipped to a low of $83,211 before rebounding and reaching an intraday high of $85,290. However, it could not remain at this level and declined to its current level. BTC is up just over 1% during the ongoing session, trading around $84,786.
Binance Helping Countries With Bitcoin Reserve
According to CEO Richard Teng, Binance, the world’s largest cryptocurrency exchange, is actively involved in discussions with several countries to help them establish a Bitcoin reserve. Teng stated in an interview that the exchange is advising multiple governments on establishing a strategic Bitcoin reserve and formulating crypto asset regulation.
“We have actually received quite a number of approaches by a few governments and sovereign wealth funds on the establishment of their own crypto reserves.”
However, Teng did not disclose the countries with whom Binance has entered discussions. Teng believes the US’s crypto-friendly stance has prompted several countries to approach the exchange for help setting up and handling a potential Bitcoin reserve. The Binance CEO also lauded pro-crypto policy developments in the US, including discussions around a national Bitcoin reserve and a digital asset stockpile. Recently, the governments of Pakistan and Kyrgyzstan announced a collaboration with Binance and former CEO Changpeng Zhao on crypto regulations.
Bitcoin’s Futures Sentiment Weakens
Bitcoin’s upward trajectory has waned after a strong recovery phase that saw the flagship cryptocurrency rebound from a low of $75,000 to reclaim $80,000 and tap $86,000 before declining. BTC’s slight pullback comes after registering a 10% increase over seven days, helping it recover from recent declines triggered by macroeconomic pressures, including tariffs and trade tensions. However, while the price action suggests a healthy retracement or consolidation phase, market sentiment tells a more complicated story. According to a CryptoQuant analyst, futures sentiment has not mirrored the price surge, suggesting derivatives traders are being cautious. The divergence between the price action and market sentiment could indicate growing uncertainty or a broader shift in investor behavior.
Bitcoin Online Chatter Turns Bullish
The tone of Bitcoin-related social media chatter has turned bullish, according to the crypto analytics platform Santiment. The change in sentiment comes despite BTC struggling to break above $85,000. Santiment stated in a post on X,
“Traders are showing optimism that BTC can regain $90K, which will likely be dependent on tariff and global economy news as the week progresses.”
Santiment’s social media tracker, used to gauge how social media users feel about crypto based on the tone of their posts, moved into bullish territory. Before its latest move, the indicator was in neutral territory with a score of around 1,606, indicating that social media users were unsure about BTC’s trajectory.
Powell Flags Concerns
US stocks fell on Wednesday after Nvidia flagged $5.5 billion in tariff-related charges, and Federal Reserve Chair Jerome Powell warned about the economic risks due to President Trump’s economic policies. As a result of the chaos, the S&P 500 dropped over 2% while the Dow Jones Industrial Average fell 1.7%. Meanwhile, the Nasdaq Composite dropped by around 3%, inching closer to bear market territory. Nvidia shares plunged almost 10% after the company revealed it would take a $5.5 billion charge due to export curbs imposed by the US government. The US has banned the company from exporting its H20 graphics processors to the Chinese market.
Despite the selloffs, BTC and other cryptocurrencies maintained their position, with the flagship cryptocurrency holding above $84,000 despite growing market pressure.
Bitcoin (BTC) Price Analysis
BTC is trading just under $85,000 as it struggles to build momentum and move past the resistance of around $86,000. As a result, BTC’s recovery rally has stalled over the past few sessions, raising the risk of a bearish shift in key indicators. $86,000 emerged as a key resistance zone on Sunday when the flagship cryptocurrency raced to a high of $86,030 before losing momentum and dropping to $85,378. Additionally, the MACD on the daily chart has stopped displaying successively higher bars above the zero line, indicating a loss of upward momentum. The downward-trending 50-day SMA also calls for caution on the part of buyers. BTC must hold above $80,000 to invalidate this bearish prediction. The flagship cryptocurrency must close above $86,000 to continue its recovery rally.
BTC is trading between $84,000 and $85,000 after rising back above $80,000 on Friday. BTC’s recovery comes despite a substantial fall in trading volume. According to analysts from Oppenheimer, investor risk appetite is being pressured by trade-related uncertainty, which has counteracted enthusiasm about the crypto industry’s prospects under the Trump administration.
“It's unfortunate to see Trump's on-and-off again tariffs have driven bear market concern, recession fear, and pullback of retail trading.”
The analysts noted that the resulting pullback in BTC and other cryptocurrencies, and crypto stocks has been less severe than those seen during previous declines, indicating the asset class’s growing maturity and resilience.
“It demonstrates that this asset class has matured and become more resilient.”
BTC started the previous week facing substantial volatility as it fell to a low of $74,393 and then surged past $80,000 before settling at $79,165, ultimately registering an increase of 1.10%. The price was back in the red on Tuesday, dropping almost 4% to $76,279. Markets rallied on Wednesday, and BTC surged over 8% to reclaim $80,000 and settle at $82,600. However, BTC’s rally lost momentum on Thursday as the price fell 3.64%, slipping below $80,000 and settling at $79,592. Sentiment changed on Friday as buyers returned to the market. As a result, BTC rose almost 5% to reclaim $80,000, cross the 20-day SMA and settle at $83,370. Buyers retained control on Saturday, with the price registering an increase of 2.41% to move past the 50-day SMA and $85,000 and settle at $85,378.
Source: TradingView
Despite the positive sentiment, BTC was back in the red on Sunday, dropping almost 2% and settling at $83,776. The current week started positively as the price rose 1.01% to $84,619. However, it was back in the red on Tuesday, dropping 1.08% and settling at $83,701. BTC recovered on Tuesday, registering a marginal increase and settling at $84,031. The current session sees BTC up almost 1% and trading at $84,650 as it looks to build momentum to reclaim $85,000 and make a renewed push toward $90,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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