Key Points
- The price of Bitcoin (BTC) has risen by 1.5% in the last 24 hours, currently trading above $87,000.
- This performance occurs amidst a generally bearish sentiment in the cryptocurrency market.
Bitcoin Reaches $87,000
The cryptocurrency market is experiencing a bullish trend on Wednesday after a challenging start to the week, with Bitcoin, Ether, and XRP all showing gains. While price movements of these leading cryptocurrencies remain modest, temporary relief may be on the horizon.
Bitcoin, the leading cryptocurrency by market capitalization, is trading above $87,000 but could face further losses in the short term. In an email to CoinJournal, Nic Puckrin, an investment analyst and co-founder of the Coin Bureau, suggested that additional selling pressure may be expected in the coming days. Puckrin noted,
“Bitcoin is back in the red – a chart that is becoming all too familiar as a disappointing fourth quarter draws to a close. Dropping to approximately $86,000, BTC is now testing its 100-week moving average – a strong support level around $84,800. Once again, concerns surrounding the AI bubble and its impact on future monetary policy seem to be at play.”
Bitcoin May Extend Short-Term Correction
The BTC/USD 4-hour chart reflects a bearish trend, as Bitcoin has underperformed since the beginning of the week. After being rejected last Friday, the price of Bitcoin has lost 7% of its value since then.
On Monday, BTC retested the support level at $85,569, which held, allowing the price to reach $87,500 by Wednesday.
If the correction continues and the daily candle closes below the support of $85,569, Bitcoin could extend its decline towards the psychological level of $80,000.
The relative strength index (RSI) on the 4-hour chart stands at 38, below its neutral level of 50, indicating a strengthening bearish momentum. Additionally, the lines of convergence in the moving average convergence divergence (MACD) have converged, reinforcing the bearish narrative on the chart.
However, if the bullish trend resumes, Bitcoin could rebound towards the Fibonacci retracement level of 61.8% at $94,253.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
