Key takeaways
- BTC rose 1.5% over the past 24 hours and is now trading above $87,000 per coin.
- This gain comes despite a generally bearish sentiment across the wider crypto market.
Bitcoin recaptures $87,000
The cryptocurrency market is showing signs of optimism on Wednesday after a weak start to the week, with Bitcoin, Ether and XRP currently in the green. Price action among the three largest cryptocurrencies remains muted, but they may see a temporary relief rally in the coming hours.
Bitcoin, the leading cryptocurrency by market cap, is trading above $87,000 per coin, although it could face further losses in the near term. In an email to CoinJournal, Nic Puckrin, investment analyst and co‑founder of Coin Bureau, said he expects additional selling pressure in the days ahead. Nic added,
“Bitcoin is back in the red — this chart is becoming all too familiar as we near the end of a disappointing fourth quarter. BTC, which dropped to roughly $86,000, is now knocking on its 100‑week moving average — a strong support area around $84,800. And once again, concerns about an AI bubble and its implications for future monetary policy appear to be weighing on prices.”
Bitcoin could extend its correction in the near term
The four‑hour BTC/USD chart looks bearish and orderly, reflecting Bitcoin’s underperformance since the start of the week. The price was rejected on Friday and has lost about 7% since then.
On Monday, BTC retested the $85,569 support level and held, which allowed the coin to climb to $87,500 on Wednesday.
If the correction resumes and the daily candle closes below the $85,569 support, Bitcoin could extend its decline toward the psychological $80,000 level.
The four‑hour Relative Strength Index (RSI) sits at 38, below the neutral 50 level, indicating growing bearish momentum. In addition, the Moving Average Convergence Divergence (MACD) lines have converged, reinforcing the bearish narrative on the chart.
However, if the bullish trend reasserts itself, Bitcoin could rally toward the 61.8% Fibonacci retracement level at $94,253.