Key takeaways
- BTC traded near $89k after losing less than 1% of its value over the past 24 hours.
- The leading cryptocurrency could test and potentially overcome the $90k resistance in the near term.
BTC trading below $90k
The cryptocurrency market opened the new weekly candle on a weaker note, with Bitcoin and other major digital assets now in the red. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) are trading around key levels after modest corrections over the past few days.
The three largest cryptocurrencies by market capitalization could see further losses in the near term as downward momentum builds across key indicators.
Traders and investors are closely watching critical support zones for signs of stabilization or deeper corrective moves.
Market participants are also monitoring upcoming macroeconomic events in global financial markets. In the US, attention centers on unemployment figures, ADP employment data and weekly jobless claims, together with November inflation data and the preliminary December PMI readings.
Speeches from Federal Reserve governors, including Stephen M. Miller and Christopher J. Waller, may also provide clues to the future path of interest rates.
The Bank of Japan is expected to raise its policy rate to 0.75% at its upcoming meeting on Thursday.
Bitcoin may face further correction
The 4-hour BTC/USD chart is bearish as Bitcoin has underperformed in recent days. The cryptocurrency was rejected at last week’s descending trend line and failed to break the $94k resistance. As of Monday, BTC hovered around $89,000.
If the downward trend continues, Bitcoin could slide toward the next major support level near $85,569. For now, that support remains intact.
The Relative Strength Index (RSI) on the 4-hour chart sits at 42, below the neutral 50 level, indicating growing bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) lines are converging, and a bearish crossover could increase selling pressure.
On the upside, if buyers regain control and Bitcoin breaks above the $94k resistance, the rally could extend toward the psychological $100,000 level.