Key takeaways
- BTC fell by less than 1% as the market remains volatile.
- The leading cryptocurrency could retest the $87,000 support level again before resuming an upward move.
BTC price action remains volatile
The cryptocurrency market continues to lag, with BTC and other top coins trading lower. Bitcoin lost 0.7% of its value over the past 24 hours and is currently trading around $89,150.
The broader crypto market is trying to stabilize after this week’s sell-off. 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 attempted to defend the psychological $90,000 level but failed, with Bitcoin re-testing the middle of a horizontal parallel channel at $87,787 before starting a recovery. At the time of writing on Friday, BTC trades near $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 of $91,942.
The Relative Strength Index (RSI) on the four-hour chart sits at 39 and is moving toward the neutral 50 level, suggesting weakening bearish momentum. For bullish momentum to hold, the RSI must climb above the neutral mark.
However, the moving average convergence divergence (MACD) indicator showed a bearish crossover earlier in the week, signaling modest downward pressure.
If the recovery falters and Bitcoin closes daily below the $87,787 support level, the decline could extend toward the lower boundary of consolidation near $85,569.
Market conditions are currently unstable and directional clarity is lacking. Bitcoin has given back much of the gains it made earlier this month amid trading tensions between the United States and the European Union over Greenland.
Although the dispute now appears to be easing, Bitcoin’s performance has not shown a significant improvement.