Key Points
- BTC has risen by less than 1% and is trading above $87,000.
- It may climb toward $90,000 as bullish momentum builds.
Bitcoin Surpasses $87,000 Amidst Weak Institutional Demand
Bitcoin (BTC), the leading cryptocurrency by market capitalization, is trading above the $87,000 mark after a modest increase of less than 1% in the past 24 hours. This uptick follows Bitcoin’s recent dip to a support level of $86,000 just hours prior.
This rally occurs despite a notable decline in institutional demand within the market. Data from SoSoValue indicates that Bitcoin spot ETFs have experienced an outflow of $188.64 million as of Tuesday, marking the fourth consecutive day of withdrawals since December 18.
As the festive season approaches, Bitcoin has reclaimed the $87,000 level and could potentially drive toward $90,000 in the short term. However, if withdrawals continue to escalate post-holidays, additional corrections in Bitcoin’s price may occur.
BTC Aims for $90,000 as Technical Indicators Improve
The BTC/USD four-hour chart displays a bullish trajectory despite recent price fluctuations. Technical indicators have shown signs of improvement, suggesting that buyers are gradually regaining control over the market.
The Relative Strength Index (RSI) on the four-hour chart is currently at 49, close to the neutral zone of 50, indicating that buyers are slowly making their presence known. Additionally, converging MACD lines point to a growing bullish bias.
If the current trend continues, Bitcoin might rebound toward the next major resistance level at $90,533. This level has proven challenging for Bitcoin to exceed in recent weeks, making it likely to encounter a reaction at this point.
Should Bitcoin surpass this resistance, it could potentially rally towards $94,000 for the first time since December 10.
Conversely, if bearish sentiment resurfaces, Bitcoin may test the December 18 low of $84,633 in the short term.
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.
