Bitcoin Plunges to $86K, Bearish Sentiment Peaks

Bitcoin's price has been on a downward trajectory, with the cryptocurrency trading below key demand levels after days of price compression between critical support and resistance zones. The long period of consolidation finally broke downward, with BTC losing the crucial $90K support and setting a fresh low at $86K. This decline has shaken investor confidence, fueling uncertainty across the market.

Top analyst Axel Adler shared CryptoQuant data revealing that the market has seen its most bearish sentiment over the past month. Negative regulatory news and macroeconomic concerns have further pressured prices, leading to a sharp increase in sell-offs. As a result, Bitcoin’s inability to reclaim key support levels suggests that further downside could be on the table.

With BTC now trading at fresh lows, traders are closely monitoring whether the $86K level will hold or if bears will continue to push the price lower. If BTC fails to stabilize, it could enter deeper correction territory, testing lower support levels. On the other hand, if bulls step in and reclaim lost ground, Bitcoin may see a potential reversal. The coming days will be crucial in determining whether BTC can regain momentum or if the bearish sentiment will persist, keeping prices under pressure.

Bitcoin has lost key support after days of uncertainty regarding its short-term direction. BTC is now struggling below the $90K level, with bulls unable to establish a strong base for a potential reversal. The recent breakdown signals growing weakness in the market as selling pressure continues to dominate price action.

Despite this, some analysts remain optimistic, believing that Bitcoin is still in the middle of a long-term bull market. They argue that while corrections are part of any cycle, BTC’s fundamentals remain strong, and new highs could be reached later this year. However, in the short term, sentiment remains heavily bearish.

Adler’s insights on X reveal that the market has seen its most bearish sentiment over the past month. Data from CryptoQuant confirms that negative regulatory news has played a significant role in shaping the current market environment, leading to a sharp reaction from investors. Bitcoin’s inability to reclaim critical support levels has amplified fear, creating an unpredictable market.

As BTC continues to trade in a bearish phase despite being in a larger bull market cycle, investors are watching closely for signs of stabilization. If BTC can reclaim lost support, it could stage a