Important points
- BTC has gained 1.5% in the past 24 hours and is currently trading above $87,000 per coin.
- This performance came despite bearish sentiment in the broader crypto market.
Bitcoin regains $87,000
After a slow start to the week, crypto markets were bullish on Wednesday, with Bitcoin, Ether, and XRP currently rising. The price trend of the top three cryptocurrencies remains weak, but may register a temporary decline in the coming hours.
Bitcoin, the top cryptocurrency by market capitalization, is trading above $87,000 per coin, but could record further losses in the short term. In an email to Coinjournal, investment analyst and Coin Bureau co-founder Nick Packlin believes the market could face further selling pressure in the coming days. Nick added:
“Bitcoin is once again in the red. This chart is becoming all too familiar as a disappointing fourth quarter comes to a close. Having fallen to around $86,000, BTC is now knocking on the door of the 100-week moving average, a strong support level near $84,800. And once again, concerns about the AI bubble and concerns about future monetary policy appear to be the culprit.”
Bitcoin may extend correction in the short term
The BTC/USD 4-hour chart is bearish and efficient as Bitcoin has underperformed since the beginning of the week. Bitcoin price faced a rejection on Friday and has since lost 7% of its value.
BTC retested the $85,569 support level on Monday and that level held, allowing BTC to reach the $87,500 level on Wednesday.
If the correction continues and the daily candlestick closes below the $85,569 support, Bitcoin could extend the decline towards the psychological $80,000 level.
The relative strength index (RSI) on the 4-hour chart is 38, below the neutral level of 50, indicating bearish momentum is gaining momentum. Additionally, the Moving Average Convergence Divergence (MACD) line has converged, adding to the bearish narrative on the chart.
However, if the bullish trend resumes, Bitcoin could rise towards the 61.8% Fibonacci retracement level of $94,253.
