Key Takeaways
- BTC fell by less than 1% as the market remains volatile.
- The leading cryptocurrency may retest the $87,000 support level before resuming upward movement.
BTC Price Action Remains Volatile
The crypto market continues to struggle, with Bitcoin and other major coins trading lower. Over the past 24 hours, Bitcoin has lost about 0.7% of its value and is currently trading near $89,150.
The broader crypto market is attempting to stabilize after a sell-off earlier this week. Bitcoin began the week on the back foot after closing below key support levels, including the 50-day exponential moving average (EMA) at $91,942.
Bulls tried to hold the psychological $90,000 level but failed, with Bitcoin retesting the middle of a horizontal parallel channel at $87,787 before mounting a recovery. At the time of writing on Friday, BTC is trading around $89,175.
Will Bitcoin Recover Above $91,000 Soon?
If the recovery continues, Bitcoin could extend gains toward the first major resistance at the 50-day EMA, currently near $91,942.
The Relative Strength Index (RSI) on the 4-hour chart sits at 39 and is trending upward toward the neutral 50 level, suggesting weakening bearish momentum. For bullish momentum to return, the RSI needs to climb above the neutral mark.
However, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover earlier in the week, indicating modest downward pressure.
If the recovery fails and Bitcoin closes a daily candle below the $87,787 support level, the decline could extend toward the lower boundary of consolidation at $85,569.
Market conditions are currently unsettled, with no clear direction. Bitcoin has given back much of the gains it made earlier this month amid trading tensions between the United States and the European Union regarding Greenland.
Although that issue appears to have been resolved, Bitcoin’s performance has not shown a meaningful improvement yet.