Key Points
- The BTC has risen by less than 1% and is now trading above $87,000.
- It could climb towards $90,000 as bullish momentum builds.
Bitcoin Surpasses $87,000 Amidst Weak Institutional Demand
Bitcoin (BTC), the leading cryptocurrency by market capitalization, is currently trading above the $87,000 mark after a modest increase of less than 1% over the past 24 hours. This positive performance comes after Bitcoin briefly touched a support level of $86,000 hours earlier.
This rally occurs despite dwindling institutional demand for Bitcoin. Data from SoSoValue indicates that Bitcoin exchange-traded funds (ETFs) saw an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals since December 18.
As the holiday season unfolds, Bitcoin has successfully regained the $87,000 level and may approach $90,000 in the short term. However, continuous and intensified outflows post-holidays could lead to further price corrections for the cryptocurrency.
BTC Aims for $90,000 as Technical Indicators Improve
The four-hour BTC/USD chart is showing bullish signals, even amid the recent price volatility. Technical indicators have shown improvement, suggesting that bulls are gradually regaining control over the market.
The Relative Strength Index (RSI) on the four-hour chart stands at 49, nearing the neutral mark of 50, which indicates that bullish momentum is returning. Additionally, the MACD lines are converging, indicating an increasing bullish bias.
If this resurgence continues, Bitcoin could bounce back toward the next major resistance level at $90,533. This resistance has proven challenging for Bitcoin to breach in recent weeks, and a reaction at this level is expected.
Should the $90,533 level be surpassed, Bitcoin may rise towards the $94,000 resistance for the first time since December 10. Conversely, if bears regain control of the market, Bitcoin might retest the December 18 low of $84,633 in the near term.
