Key takeaways
- BTC is trading around $89,000 after losing less than 1% of its value in the past 24 hours.
- The leading cryptocurrency could test the $90,000 resistance level in the near term.
BTC trading below $90,000
The crypto market opened a new bearish weekly candle as Bitcoin and other major digital assets sit in the red. Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading near key levels after modest pullbacks over the past few days.
The three largest cryptocurrencies by market capitalization may extend losses as bearish momentum builds across major indicators.
Traders and investors are closely watching critical support zones for signs of stabilization or a deeper corrective move.
Market participants are also monitoring upcoming macroeconomic events in global financial markets. In the U.S., those events include unemployment figures, ADP employment data, weekly jobless claims, November inflation data, and preliminary December PMI readings.
Speeches from Federal Reserve officials, including Governor Stephen Miran and Christopher J. Waller, could provide clues about the future path of interest rates.
The Bank of Japan is also expected to raise its policy rate to 0.75% at its upcoming Thursday meeting, a development that could influence risk sentiment.
Bitcoin may face further correction
The 4-hour BTC/USD chart looks bearish after Bitcoin’s disappointing performance in recent days. The cryptocurrency was rejected at last week’s downtrend line and failed to overcome the $94,000 resistance level. On Monday, BTC traded around $89,000.
If the bearish trend continues, Bitcoin could slide toward the next major support level near $85,569, although that support remains relatively strong for now.
The 4-hour Relative Strength Index (RSI) sits at 42, below the neutral 50 level, signaling rising bearish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) lines are converging; a bearish crossover could add to downside pressure.
Conversely, if bulls regain control and BTC breaks above the $94,000 resistance, the rally could extend toward the psychological $100,000 level.