What’s Pushing Price of Bitcoin Down and Why Is It Struggling?

The price of Bitcoin has been struggling to maintain its momentum, recently dropping from its peak of $105,000 to $75,000.

As the price falls, market traders are questioning what is responsible for Bitcoin’s current struggles?

Miner Reserves: A Key Player in Bitcoin’s Struggle

The blue shows a chart of miner reserves and the black shows Bitcoin’s price. You can see here again that there is clear correlation.

During the course of Q1 2025, miner reserves lowered from 1.812 million BTC to 1.809 million BTC while its price fell just as neatly. However, why are miners selling when prices are falling?

In early February, there was a noticeable spike in miner reserves, but this was followed by a swift decline in March and April.

Miners typically offload BTC when they need liquidity to cover operational costs such as electricity bills, equipment maintenance, or general operational expenses.

This isn’t profit-taking; rather, it’s a sign of liquidity pressure, indicating that miners may be struggling financially in the current market conditions.

As Bitcoin’s price continues to hover at lower levels, the constant selling from miners adds upward pressure on supply, which, in turn, pushes the price even lower.

With fewer miners holding onto their Bitcoin, market sentiment is impacted, as falling reserves indicate increasing supply in the market.

The Current Market Outlook: A Battleground of Bulls and Bears

The ongoing flat price action in Bitcoin can be attributed to conflicting macroeconomic factors, including unpredictable U.S. economic policies, global trade tensions, and technical setups in the market.

Recent developments, such as the Federal Reserve keeping interest rates steady and President Trump’s support for Bitcoin, have created both bullish and bearish narratives that are keeping the price range-bound.

On the positive side, the Federal Reserve’s decision to hold interest rates and Jerome Powell’s dovish remarks about inflation briefly lifted market sentiment.

Meanwhile, in the political sphere, Trump’s declaration of the U.S. as a “Bitcoin superpower” and the proposal for pro-crypto policies, such as stablecoin legislation, fueled optimism among Bitcoin advocates.

The U.S. inflation forecast was raised to 2.8% for 2025, signaling concerns about stagflation risks.

The trade war fears between the U.S. and China have resulted in a global risk-off sentiment, pushing investors to retreat from higher-risk assets like Bitcoin.

These concerns have led to an overall lack of new capital entering the market, contributing to Bitcoin’s inability to push higher.

Technical Setups: Limited Bullish Catalysts

On the technical side, Bitcoin’s price is currently caught in a consolidation phase marked by a falling wedge pattern, which traditionally signals a potential bullish reversal.

Despite the breakout potential, the lack of sustained upward momentum is keeping the price trapped in a narrow range between $82,400 and $85,300.

This consolidation phase is typical of markets waiting for a clearer catalyst to drive the next move.

According to recent charts, Bitcoin’s RSI is currently at 52.44 which places the market sentiment in the neutral zone and there is still potential to surge if buying pressure increases.

Despite this, sellers have the upper hand according to the negative Cumulative Volume Delta (CVD) of -223, which has prevented the price from breaking out of the wedge pattern.

Bitcoin’s price is expected to remain flat or struggle until the upper resistance of falling wedge is breached.

The breakout will occur provided that we will have some significant volume increase and start seeing a bullish momentum with it, which could press the price towards the area of $90,000 – $100,000.

If it does not get these conditions, Bitcoin may be stuck in the current range.

External Factors: Global Tensions and Their Impact on Price ofBitcoin

One of the significant reasons Bitcoin’s price is currently struggling is the ongoing global tensions, particularly trade wars between the U.S. and China. Mena Theodorou, co-founder of Coinstash, commented,

“The current sell-off is not driven by crypto-specific catalysts; crypto is simply moving in line with traditional markets reacting to global trade tensions.”

The price movement of Bitcoin is directly linked to global macroeconomic events and therefore Bitcoin is susceptible to events that are not necessarily related to the cryptocurrency market.

Coinstash co-founder Mena Theodorou believes that if trade tensions relax or negotiations restart, then the market might stabilize and it might enable Bitcoin to return to the bullish regime.

Yet if geopolitics intensify, then the price of Bitcoin is likely to remain under pressure.

Can Bitcoin Break the Pattern of Struggle?

The chart depicting Bitcoin’s open interest opens up to show that most of its traders are clinging on to possession in perpetual contracts, which in turn is a reflection of the market structure going on right now.

Nevertheless, with a decline in open interest and no new capital inflows, Bitcoin’s price is probably going to stick to the same range for the time being.

Market analyst Danny_Crypton, however, believes that Bitcoin has bottomed out and that a bull run began on April 18.

He points out that Bitcoin has retested the inverse neckline, and if it holds, a price of $125K is possible by 2025.

This could trigger a parabolic altcoin season, with significant gains for altcoins, potentially turning $100 into $10K in a month.