Key takeaways
- BTC is up 1.5% in the last 24 hours and is now trading above $87k per coin.
- The performance comes despite the bearish sentiment in the broader crypto market.
Bitcoin recaptures $87k
The cryptocurrency market is bullish on Wednesday following a poor start to the week, with Bitcoin, Ether, and XRP currently in the green. The price action for the top three cryptocurrencies remains weak, but they could record temporary relief over the next few hours.
Bitcoin, the leading cryptocurrency by market cap, is trading above $87k per coin but could record further losses in the near term. In an email to Coinjournal, Nic Puckrin, investment analyst and co-founder of the Coin Bureau, believes that the market could face further selling pressure over the next few days. Nic added that,
“Bitcoin is in the red once again – a chart that is becoming all too familiar as a disappointing Q4 draws to a close. Having fallen to around $86,000, BTC is now knocking on the door of its 100-week moving average – a strong support level that sits around $84,800. And, once again, AI bubble fears and concerns over future monetary policy appear to be to blame.”
Bitcoin could extend its correction in the near term
The BTC/USD 4-hour chart is bearish and efficient as Bitcoin has underperformed since the start of the week. Bitcoin’s price faced rejection on Friday and has lost 7% of its value since then.
BTC retested the $85,569 support level on Monday, with the level holding, allowing BTC to hit the $87,500 level on Wednesday.
If the correction continues and the daily candle closes below the $85,569 support, Bitcoin could extend the decline toward the psychological $80,000 level.
The Relative Strength Index (RSI) on the 4-hour chart is at 38, below its neutral level of 50, indicating bearish momentum gaining traction. Moreover, the Moving Average Convergence Divergence (MACD) lines have converged, adding a bearish narrative to the chart.
However, if the bullish trend resumes, Bitcoin could rally towards the 61.8% Fibonacci retracement level at $94,253.
