- Bitcoin struggles under $85,900, facing strong resistance and risking a drop to $76K.
- On-chain metrics report decreasing active addresses, which point towards diminishing network activity.
- Bitcoin must reclaim major levels to shift sentiment and build bullish momentum.
Bitcoin is in tight consolidation, struggling to break above major resistance at $85,900 with a bearish setup in place. The market continues to wait for major technical levels to react with traders closely watching support levels for potential price activity.
Bitcoin Faces Strong Resistance at $85,900
Bitcoin remains trapped under the $84,000–$85,900 resistance zone, failing to reclaim higher levels. The price continues consolidating below the 200-day exponential moving average (EMA), limiting bullish momentum. A rejection at this key barrier could trigger another leg down toward the $76,000–$73,000 support range.
According to a recent assessment from Crypto Candy, Bitcoin’s price structure remains bearish as it trends below both the 50-day and 200-day moving averages. The downtrend started in March after failing to sustain levels above $92,000.
Source: Crypto Candy
Sellers maintained control, forming a lower-high pattern while restricting upward movement. The key support levels now stand at $76,552, followed by $72,750 and $67,359. Meanwhile, Bitcoin price must break and hold above $85,900 to signal a potential reversal.
On-Chain Data Reflects Declining Network Activity
A detailed breakdown from on-chain data shows fluctuating Bitcoin active addresses over the past six months. The number of active addresses peaked above 1,000,000 in December when Bitcoin exceeded $80,000 but has since declined. By mid-March, active addresses dropped below 500,000, aligning with Bitcoin’s correction below $70,000.
Source: Glassnode
Monitoring market behavior, Crypto Candy noted that Bitcoin’s recent activity aligns with shifting investor sentiment. Higher participation coincided with price rallies while declining activity preceded corrections. February’s sharp drop in active addresses, which briefly fell below 600,000, signaled lower transaction volumes and potential sell pressure.
Tracking market movements, analysts highlight the strong correlation between active addresses and price action. A sustained increase in addresses could indicate renewed demand, potentially supporting a breakout. However, Bitcoin remains vulnerable unless it reclaims key resistance levels.
