Bitcoin has gained nearly 20% over the past month, but analysts warn that the market may still face strong resistance before a lasting bottom can be confirmed.
According to a recent report from CryptoQuant, Bitcoin needs to reclaim and maintain the $88,880 level before traders can confidently confirm that the market has established a sustainable bottom.
Underwater Investors Could Increase Selling Pressure
CryptoQuant explained that Bitcoin’s current trading price near $80,000 remains below several important realized price levels connected to investor groups still holding unrealized losses.
The first major resistance area sits around $88,880 and is linked to investors who purchased Bitcoin between three and six months ago. Another resistance zone appears near $93,450 for holders from the 12 to 18 month group.
The strongest overhead resistance currently stands at approximately $111,850, tied to investors who entered the market between six and 12 months ago. That level is nearly 29% above Bitcoin’s current spot price.
According to the analytics platform, these realized price levels represent potential break even points where underwater investors may decide to sell once prices recover.
CryptoQuant stated that Bitcoin must not only move above $88,880 but also sustain trading above that level to confirm a true market bottom rather than a temporary breakout followed by another decline.
Until that happens, rallies between $85,000 and $88,000 could face significant selling pressure from traders who bought Bitcoin between November 2025 and February 2026.
Analysts Compare Current Setup to 2022 Bear Market
Crypto analyst Ali Martinez recently noted similarities between Bitcoin’s current market structure and the pattern seen during the 2022 bear market recovery.
The analyst pointed to the period in August and September 2022 when Bitcoin briefly recovered toward $25,000 before suffering another sharp decline that eventually pushed the cryptocurrency below $16,000.
Based on that historical pattern, Martinez suggested that Bitcoin could experience another rejection between the $80,000 and $82,000 range before potentially declining below $55,000 if market conditions unfold similarly.
He also highlighted heavy sell walls between $79,000 and $80,000, a range where Bitcoin has already faced multiple rejections in recent weeks.
Derivatives Data Reflects Ongoing Market Caution
Recent derivatives market activity also points to cautious sentiment among traders.
Analysts at Bitunix stated that market participants are closely monitoring liquidity behavior around the $80,000 level.
In comments shared with CryptoPotato, the exchange noted that Bitcoin open interest declined by approximately 5.13% over the last 24 hours.
At the same time, funding rates have remained negative throughout much of the past week, indicating that bearish positioning is still present in the market. However, analysts observed that the intensity of those negative readings has started to weaken.
According to Bitunix, the trend suggests that excessive leverage in the market is gradually cooling while bearish hedging activity has eased slightly, although overall market positioning remains cautious.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
