Key Points
- BTC fell less than 1% as the market remains volatile
- Leading cryptocurrencies may test the $87,000 support level again before moving higher
BTC Price Action Remains Volatile
The cryptocurrency market continues to struggle, with Bitcoin and several top coins trading lower. Bitcoin lost approximately 0.7% over the past 24 hours and is currently trading near $89,150.
The broader crypto market is attempting to stabilize after this week’s sell-off. Bitcoin entered the week on the back foot, dropping below a key support: the 50-day exponential moving average (EMA) at $91,942.
Bulls tried to defend the psychological $90,000 level but failed, and Bitcoin re-tested the midpoint of the horizontal parallel channel at $87,787 before beginning a recovery. At the time of writing on Friday, BTC is trading around $89,175.
Will Bitcoin Reclaim $91,000 Soon?
If the recovery continues, Bitcoin could extend its rally toward the first major resistance level at the 50-day EMA of $91,942.
The relative strength index (RSI) on the 4-hour chart sits at 39 and is pointing upward toward the neutral 50 level, indicating that downward momentum is easing. For bullish momentum to persist, the RSI needs to move above neutral territory.
However, the moving average convergence divergence (MACD) indicator showed a bearish crossover on Tuesday, signaling some 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 range around $85,569.
Market conditions remain volatile with no clear directional bias. Bitcoin has given back much of the gains accumulated earlier this month amid trade tensions between the United States and the European Union centered on Greenland.
Although the diplomatic issue appears to be easing, Bitcoin’s performance has not shown a meaningful improvement yet.