Key Points
- BTC is down by less than 1% as the market remains unstable.
- The leading cryptocurrency may retest the support level of $87,000 before attempting a rebound.
Bitcoin Price Trend Remains Volatile
The cryptocurrency market continues to struggle as Bitcoin (BTC) and other major coins dip into the red. Over the past 24 hours, Bitcoin has lost 0.7% of its value, trading at approximately $89,150.
The overall cryptocurrency market is attempting to stabilize following a week of heavy sell-offs. Bitcoin started the week on a downturn, closing below significant support levels: the 50-day exponential moving average (EMA) at $91,942.
Bulls have tried to defend the psychological level of $90,000 but failed, causing Bitcoin to retest the midpoint of a horizontal channel at $87,787 before initiating a recovery. As of Friday, BTC is trading at around $89,175.
Can Bitcoin Rebound Above $91,000 Soon?
If the recovery continues, Bitcoin could push forward toward its first major resistance at the 50-day moving average at $91,942.
The relative strength index (RSI) on the four-hour chart is currently at 39, indicating a bearish momentum decline. To sustain any bullish momentum, the RSI must surpass the neutral level of 50.
However, the moving average convergence divergence (MACD) indicator indicated a bearish cross on Tuesday, suggesting slight downward pressure.
If the recovery fails and Bitcoin’s daily candle closes below the support level at $87,787, it might prolong the downturn towards the lower boundary of consolidation at $85,569.
Currently, market conditions remain turbulent, and a clear direction is not evident. Bitcoin has erased most of the gains accumulated earlier this month, partly influenced by trade tensions between the United States and the European Union regarding Greenland.
Although the issue appears to be resolved, Bitcoin’s performance has not significantly improved.
