Key Highlights
- Bitcoin (BTC) is down by less than 1% as the market remains volatile.
- The leading cryptocurrency may retest the support level of $87,000 before a potential recovery.
BTC Price Movement Remains Unstable
The cryptocurrency market continues to struggle, with Bitcoin and other leading coins in the red. Over the past 24 hours, Bitcoin has lost 0.7% of its value and is currently trading at approximately $89,150.
The overall cryptocurrency market is attempting to stabilize following a massive sell-off this week. Bitcoin began the week on a negative note, closing below critical support levels, specifically the 50-day Exponential Moving Average (EMA) at $91,942.
Bulls tried to defend the psychological level of $90,000 but were unsuccessful, as Bitcoin retested the mid-point of a horizontal parallel channel at $87,787 before starting a recovery. As of Friday’s writing, BTC is trading at around $89,175.
Will Bitcoin Retrace Above $91,000 Soon?
If the recovery continues, Bitcoin could extend its rally towards the first major resistance and the 50-day moving average at $91,942.
The Relative Strength Index (RSI) on the four-hour chart is at 39, approaching the neutral level of 50, indicating decreasing bearish momentum. For bullish momentum to sustain, the RSI must surpass the neutral mark.
Nonetheless, the Moving Average Convergence Divergence (MACD) indicator displayed a bearish crossover on Tuesday, suggesting slight downward pressure.
If the recovery falters and Bitcoin’s daily candle closes below the support level of $87,787, it could prolong the decline towards the lower boundary of the consolidation at $85,569.
Currently, market conditions are turbulent, with no clear direction in sight. Bitcoin has erased most of the gains made earlier this month due to trade tensions between the United States and the European Union regarding Greenland.
However, despite the apparent resolution of this issue, Bitcoin’s performance has not significantly improved.
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