BTC remains below $90k despite Trump backing Greenland tariff threats
Key receivers
Bitcoin is up 1% in the last 24 hours but continues to trade below $90k.
The performance came despite Trump's Davos speech on Wednesday ending tariffs imposed on European countries over the US purchase of Greenland.
Bitcoin remains below $90k despite improved risk sentiment
Bitcoin is currently in the green after adding 1% to its value over the past 24 hours, ending a six-day losing streak.
The price recovery came after US President Trump's response to Greenland at the World Economic Forum in Davos intensified global risk sentiment.
On Wednesday, Trump mentioned that he had reached an agreement with the North Atlantic Treaty Organization (NATO) on the framework of the future agreement on Greenland. This ended the need to impose new tariffs on European countries.
In addition, Trump added that he hopes to sign the bill on crypto soon, as the US Congress continues to work on the crypto market structure bill extended by the Senate Banking Committee last week.
However, the positive news did not affect Bitcoin's price action as it continued to trade below the $90k threshold.
Institutional demand for Bitcoin is also declining. According to data from SoSoValue, the Spot Bitcoin ETF posted $708.71 million in outflows on Wednesday, marking the third straight day of outflows and the highest one-day outflow since Nov. 20.
BTC eyes $93k from $87k support
The BTC/USD 4H chart is weak and bearish as Bitcoin has lost 7% of its value over the past seven days.
It is currently trading below the 50-day Exponential Moving Average (EMA) at $92,044 and has missed the $90k psychological level. Bitcoin is trading at $89,900 after retesting the midpoint of the horizontal parallel channel at $87,787 earlier this week.
If BTC continues its sustained recovery, it could extend its advance towards the 50-day EMA at $92,044.
The RSI on the 4-hour chart is 40, pointing upwards towards the neutral 50 level, indicating a fading bearish bearish trend. However, the RSI should remain above neutral 50 for the bulls to push the price higher.
The Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover on Tuesday, indicating downward pressure.
However, if BTC closes the daily candle below the $87,787 support, it may extend the decline to the next support level of $85,569.
