Key conclusions
- Bitcoin rose 1% in the past 24 hours but remains trading below $90,000.
- This performance came despite former President Trump’s Davos remarks on Wednesday, which removed the need to impose new tariffs on European countries amid talks over Greenland.
Bitcoin stays below $90,000 despite improved risk sentiment
Bitcoin is currently in the green after gaining 1% over the last 24 hours, ending a six-day losing streak.
The price recovery follows a broader improvement in global risk appetite, sparked by former President Trump’s remarks about Greenland at the World Economic Forum in Davos.
On Wednesday, Trump said he had reached an agreement with NATO on a framework for a potential deal concerning Greenland, removing the rationale for imposing new tariffs on European nations.
He also said he hopes to sign cryptocurrency legislation soon, as the US Congress continues working on a market-structure bill for crypto that was delayed last week by the Senate Banking Committee.
Despite the positive headlines, Bitcoin’s price remains capped below the $90,000 threshold.
Institutional demand for Bitcoin is weakening as well. Data from SoSoValue show that spot Bitcoin ETFs recorded outflows of $708.71 million on Wednesday — the third consecutive day of withdrawals and the largest single-day outflow since November 20.
BTC eyes $93,000 if $87,000 support holds
The BTC/USD 4-hour chart looks bearish and fragile, with Bitcoin down about 7% over the past seven days.
It is trading below the 50-period Exponential Moving Average (EMA) at $92,044 and has lost the psychological $90,000 level. Bitcoin trades near $89,900 after retesting the midpoint of a horizontal parallel channel at $87,787 earlier this week.
If BTC continues its recovery, it could extend gains toward the 50-period EMA at $92,044.
The 4-hour chart’s Relative Strength Index (RSI) sits at 40 and is pointing upward toward the neutral 50 level, signaling that bearish momentum is waning. However, RSI would need to hold above 50 for bulls to push the price higher sustainably.
The Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover on Tuesday, suggesting downside pressure.
Still, if BTC closes the daily candle below the $87,787 support, the decline could extend toward the next support level at $85,569.