Bitcoin (BTC) Is Trading Just Below the Critical $90,000 Level

Bitcoin is trading just below the critical $90,000 level, struggling to regain bullish momentum after weeks of uncertainty.

Bitcoin (BTC) is struggling to maintain bullish momentum as it trades just below the critical $90,000 level, with market sentiment shifting slightly from extreme fear to cautious observation. However, confidence remains fragile, and analysts are split on what comes next.

According to some analysts, failure to reclaim $90K could extend the current downtrend, while others believe a breakout above this level could trigger a sharp move to the upside.

According to on-chain data from CryptoQuant, Bitcoin is now undergoing its seventh compression of Realized Volatility on the daily timeframe during this cycle.

These periods of low volatility often precede significant price moves, and the Garman-Klass Realized Volatility metric, used to assess intraday volatility, is currently flashing an alert, signaling that Bitcoin could be on the verge of a major breakout — in either direction.

According to historical data, four of the past six volatility compressions in this cycle have resulted in price increases, while two have led to declines.

As Bitcoin hovers near a critical resistance level, this volatility squeeze is likely acting as a pressure valve, setting the stage for Bitcoin’s next big move, with traders watching closely for confirmation.

Bitcoin Momentum Stalls

Bitcoin is showing resilience as it holds above the $85,000 mark, battling to stay afloat after weeks of persistent volatility.

However, upward momentum has begun to fade, and the price has failed to push higher despite repeated attempts. Bulls are struggling to reclaim the $90,000 level, while bears are increasingly testing the strength of the $85K support zone, with a clean break below this level confirming a deeper retracement and opening the door to further downside.

According to Benzinga’s analysis, analysts remain divided on what comes next. Some warn that if Bitcoin fails to reclaim $90K soon, the market could enter a more prolonged correction phase, while others remain optimistic, placing emphasis on the potential for a breakout if bulls manage to regain control and flip resistance into support.

According to a recent X post by top analyst Axel Adler, BTC is now undergoing its seventh Realized Volatility compression on the daily timeframe in this cycle.

The Garman-Klass Realized Volatility (GVZ) metric, typically used to assess intraday volatility, has also lit up an alert, signaling that a move of some magnitude is likely on the horizon.

According to Adler’s analysis, these volatility compressions have often preceded major price shifts, with four out of six previous instances seeing Bitcoin rally sharply following the compression. In the remaining two cases, the move was to the downside.

With Bitcoin critical resistance, this volatility squeeze could act as a launchpad for the next big move — up or down — with pressure building as traders await confirmation signals to reveal the market’s true direction.