Bitcoin continues to trade below the $90,000 mark, down by less than 1% as the overall cryptocurrency market experiences turbulence. Currently, BTC is valued at approximately $89,175, reflecting a 0.7% drop over the past 24 hours.
The broader market is trying to find stability after recent sell-offs, and Bitcoin”s price action has been notably choppy. Earlier this week, Bitcoin closed beneath significant support levels, including the 50-day Exponential Moving Average (EMA) positioned at $91,942. Despite efforts from bulls to maintain the $90,000 psychological threshold, Bitcoin retraced to the midpoint of a horizontal parallel channel, reaching $87,787 before attempting a recovery.
As of now, Bitcoin”s trading sits at around $89,150, raising questions about its potential to rebound above the $91,000 level. If the upward momentum persists, Bitcoin may target the first significant resistance at the 50-day EMA of $91,942. The Relative Strength Index (RSI) on the 4-hour chart currently stands at 39, indicating a slight upward trend towards the neutral level of 50, which suggests diminishing bearish momentum.
For continued bullish movement, the RSI needs to surpass this neutral point. However, the Moving Average Convergence Divergence (MACD) indicator has recently shown a bearish crossover, hinting at modest downward pressure. Should Bitcoin”s daily candle close below the $87,787 support, it could lead to further declines toward the lower boundary of consolidation at $85,569.
The prevailing market conditions remain erratic, lacking a definitive direction. Bitcoin has lost much of the ground gained earlier in the month, a decline attributed to trade tensions between the United States and the European Union concerning Greenland. While this issue appears to be moving toward resolution, Bitcoin”s performance has yet to reflect any notable improvement.
As the market watches closely, investors remain cautious, keeping an eye on potential recovery signs and the critical support levels that could dictate Bitcoin”s next moves.
