BTC is above $87k but the sentiment is still weak.
Key receivers
BTC has gained 1.5% in the last 24 hours and is now trading above $87k per coin.
The performance comes despite bearish sentiment in the broader crypto market.
Bitcoin regained $87,000
Following a weak start to the week, the cryptocurrency market rallied on Wednesday, with Bitcoin, Ether and XRP currently in the green. Price action is weak for the three major cryptocurrencies, but they may record temporary relief in the next few hours.
Bitcoin, the leading cryptocurrency by market cap, is trading above $87,000 per coin, but may record further losses in the near future. In an email to Coinjournal, investment analyst and Coin Bureau founder Nick Puckrin believes the market could face more selling pressure in the next few days. Nick added
“Bitcoin is in the red again – a disappointing Q4 is becoming more common as Q4 approaches. Having fallen to $86,000, BTC is now knocking on the door of its 100-week moving average – a strong support level placed around $84,800. And again, the AI bubble will be responsible for future policies.”
Bitcoin may extend the correction in the near future
The BTC/USD 4-hour chart is weak and bearish as Bitcoin has underperformed since the beginning of the week. The price of Bitcoin suffered a decline on Friday and has since lost 7% of its value.
BTC retested the $85,569 support level on Monday, holding the level, allowing BTC to hit the $87,500 level on Wednesday.
If the correction continues and the daily candle closes below the $85,569 support, Bitcoin may extend its decline to the psychological $80,000 level.
The Relative Strength Index (RSI) on the 4-hour chart is at 38, below the neutral level of 50, indicating bearish momentum. Furthermore, the moving average converging divergence (MACD) lines have converged and added a bearish narrative to the chart.
However, if the bullish trend continues, Bitcoin may rally to the 61.8% Fibonacci retracement level at $94,253.
