Key points
- BTC has slipped by less than 1% as the market remains volatile.
- The leading cryptocurrency may retest support around $87,000 before any sustained advance.
BTC price action remains choppy
The cryptocurrency market continues to underperform, with Bitcoin and other major coins trading lower. Bitcoin has lost about 0.7% in the past 24 hours and is currently trading near $89,150.
The wider crypto market is attempting to find footing after this week’s sell-off. Bitcoin began the week on the back foot and closed below key support, including the 50-day exponential moving average (EMA) at $91,942.
Bulls tried to defend the psychological $90,000 level but failed, and Bitcoin revisited the midpoint of a horizontal parallel channel at $87,787 before staging a partial recovery. At the time of writing on Friday, BTC trades around $89,175.
Can Bitcoin reclaim $91,000 soon?
If the recovery continues, Bitcoin could push toward the first significant resistance at the 50-day EMA near $91,942.
The Relative Strength Index (RSI) on the 4-hour chart sits at 39 and is moving upward toward the neutral 50 mark, suggesting that bearish momentum is waning. For bullish momentum to take hold, the RSI must clear that neutral level.
Despite the improving RSI, the moving average convergence divergence (MACD) registered a bearish crossover earlier in the week, signaling mild downward pressure.
If the recovery falters and Bitcoin’s daily candle closes below the $87,787 support, the decline could extend toward the lower consolidation boundary near $85,569.
Overall market conditions remain unsettled with no clear directional bias. Bitcoin has given back most of the gains it registered earlier this month amid trading tensions between the United States and the European Union related to Greenland.
Although those diplomatic tensions appear to be easing, Bitcoin’s price performance has not shown a significant improvement.