Key takeaways
- BTC is down less than 1% as the market remains choppy.
- The leading cryptocurrency could retest the $87k support level before rallying higher.
BTC’s price action remains choppy
The cryptocurrency market continues to underperform as BTC and the other leading coins are in the red. Bitcoin has lost 0.7% of its value in the last 24 hours and is now trading around $89,150.
The broader cryptocurrency market is attempting to stabilize after this week’s sell-off. Bitcoin price started the week on a negative note, closing below key support levels: the 50-day Exponential Moving Average (EMA) at $91,942.
The bulls attempted to defend the $90k psychological level but failed, with Bitcoin retesting the midpoint of a horizontal parallel channel at $87,787 before embarking on a recovery. At the time of writing on Friday, BTC is trading at around $89,175.
Will Bitcoin recover above $91k soon?
If the recovery continues, Bitcoin could extend its rally towards the first major resistance and the 50-day EMA at $91,942.
The Relative Strength Index (RSI) on the 4-hour chart is 39, pointing upward toward the neutral 50 level, indicating fading bearish momentum. For the bullish momentum to be sustained, the RSI must move above the neutral level.
Despite that, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover on Tuesday, suggesting a mild downward pressure.
If the recovery fails and Bitcoin’s daily candle closes below the $87,787 support level, it could extend the fall toward the lower consolidation boundary at $85,569.
Currently, the market conditions are choppy, with no clear direction in sight. Bitcoin has eliminated most of the gains it accumulated earlier this month, thanks to the trade tensions between the United States and the European Union (EU) regarding Greenland.
However, while the issue seems to be resolved, Bitcoin’s performance has not significantly improved.
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