Bitcoin Traders Face -14% Loss, But Selling May Be Easing – Details

Bitcoin is once again under pressure as macroeconomic fears and political unpredictability continue to impact global markets. United States President Donald Trump’s erratic policy decisions—particularly around trade—have heightened investor anxiety, triggering volatility across both equities and crypto. Within this climate, Bitcoin has struggled to reclaim momentum, currently trading below critical resistance near the $90K mark.

Despite recent attempts to recover, demand remains weak around current levels, and bulls have yet to mount a convincing rally. Traders are watching closely, as Bitcoin needs to reclaim $90K to reestablish a bullish narrative. Until then, uncertainty reigns.

Adding to the cautious sentiment, CryptoQuant data shows that the average trader is sitting at an unrealized loss of -13.86%—a level that historically signals mounting selling pressure. While such loss levels have previously marked bottom zones, they also reflect a market gripped by fear, hesitation, and lack of conviction.

With Bitcoin down more than 29% from its January all-time high, the next move will be critical. Will traders capitulate under pressure, or could this be the foundation for a recovery? All eyes are on key support and resistance levels as the market braces for its next major move.

Sentiment Turns Bearish As Bitcoin Faces Crucial Test

Bitcoin is battling intense skepticism from analysts and investors as it struggles to prove that the current market cycle remains bullish. The macroeconomic environment isn’t helping either — recession fears, persistent inflation, and chaotic global policies, including unpredictable moves from President Trump, have cast a shadow over all risk assets, including crypto.

As selling pressure intensifies, many market participants have begun to anticipate the early stages of a bear market. Investor sentiment has become increasingly cautious, and momentum indicators suggest a lack of confidence in a near-term rally.

However, top analyst Ali Martinez offers a more optimistic view. In a recent post on X, he shared that Bitcoin traders are currently sitting at an average unrealized loss of -13.86%. Historically, when traders reach this level of loss, it has often marked the exhaustion point of selling pressure. These conditions have previously signaled local bottoms and preceded strong recoveries.

If bulls want to regain control, now is the time to act. A decisive move above resistance zones could invalidate the bearish outlook and reestablish upward momentum.

Price Range Narrows As Bulls Prepare For Key Breakout Test

Bitcoin is currently trading in a tight consolidation zone between $87,000 and $81,000, signaling that a decisive move could be on the horizon. After weeks of volatility and selling pressure, price action has flattened out, creating tension in the market as both bulls and bears await a breakout.

For bullish momentum to return, BTC must break above the $88,000 level — a move that would also reclaim the 4-hour 200-day moving average (MA) and exponential moving average (EMA). A breakout above these levels would be a short-term strength signal, potentially opening the door for a rally toward the $90,000 mark and beyond.

However, the longer BTC stays stuck below resistance, the more likely the market is to see renewed selling. Failure to reclaim $88,000 in the coming sessions could invite a wave of bearish momentum, pushing Bitcoin below $81,000 and possibly toward deeper support zones.

With Bitcoin trapped in this narrowing range, all eyes are on volume and volatility indicators to anticipate the next breakout direction. The coming days may prove pivotal in determining whether BTC reclaims control or continues its drift into further correction territory.

Featured image from Dall-E, chart from TradingView