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 briefly surpass the $90,000 resistance level in the short term.
BTC trading below $90,000
The cryptocurrency market opened a new bearish weekly candle, with Bitcoin and several large-cap tokens currently showing losses. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) are trading around key levels after modest corrections over the past few days.
The top three cryptocurrencies by market capitalization may face further short-term downside as bearish momentum builds across important indicators.
Traders and investors are closely monitoring critical support zones for signs of stabilization or a deeper corrective move.
Market participants are also watching upcoming macroeconomic events that could influence global financial markets. In the United States, attention is focused on unemployment data, ADP employment figures, weekly jobless claims, November inflation prints and preliminary December PMI readings.
Speeches by Federal Reserve officials, including governors Stephen Miran and Christopher J. Waller, may provide investors with clues about the path of interest rates.
Meanwhile, the Bank of Japan is widely expected to raise its policy rate to 0.75% at its upcoming monetary policy meeting on Thursday.
Bitcoin may face further correction
The BTC/USD 4-hour chart shows a bearish bias as Bitcoin has underperformed in recent days. Last week the price was rejected at a descending trendline and failed to break the $94,000 resistance. On Monday, BTC trades near $89,000.
If the bearish trend persists, Bitcoin could move toward the next significant support area around $85,569. That support level remains relatively strong for now.
The Relative Strength Index (RSI) on the 4-hour timeframe sits at 42, below the neutral 50 level, indicating growing bearish pressure. Additionally, the Moving Average Convergence Divergence (MACD) lines are converging; a shift to a bearish crossover would add to the confluence favoring sellers.
Conversely, if buyers regain control and push BTC above the $94,000 resistance, the rally could resume toward the psychologically important $100,000 level.