Bitcoin recovers $87k, eyes $90k resistance level: see forecast
Key receivers
BTC rose less than 1% and now trades above $87k.
As bullish momentum builds, it could rise to $90k.
Bitcoin is over $87k despite weak institutional demand
BTC, the leading cryptocurrency by market value, is trading above the $87k level after adding less than 1% to its price in the last 24 hours. The positive performance comes after Bitcoin dipped to the $86k support level a few hours ago.
The rally will come even if institutional interest in the market has waned. According to data from SoSoValue, spot bitcoin ETFs recorded $188.64 million in withdrawals on Tuesday, marking the fourth consecutive day of withdrawals since December 18.
Over the holidays, Bitcoin recovered $87k and may rally to $90k in the near future. However, if the flow continues and strengthens after the holidays, the price of Bitcoin may see further correction.
BTC eyes $90k as technical indicators improve
The BTC/USD 4-hour chart is very bullish and bullish despite the recent price action. Technical indicators have improved, suggesting that the bulls may gradually dominate the market.
The Relative Strength Index (RSI) on the 4-hour chart stands at 49, close to the neutral 50, which suggests that the bulls may regain control of the market. The MACD lines are also converging, indicating a bullish bias.
If the recovery continues, Bitcoin may rally to the next highest resistance level at $90,533. This resistance has proved difficult for Bitcoin to overcome in recent weeks, and we expect another reaction from this level.
If this level is breached, Bitcoin could rally towards $94k resistance for the first time since December 10th.
However, if the bears regain control of the market, Bitcoin may retest the December 18 low of $84,633 in the near future.
