Important Insights
Bitcoin has increased by 1.5% over the past day, now trading above $87,000 per coin.
This rise occurs despite a generally negative sentiment prevailing in the wider cryptocurrency market.
Bitcoin Surpasses $87k Again
The cryptocurrency market shows signs of recovery on Wednesday after a sluggish start to the week, with Bitcoin, Ether, and XRP all experiencing gains. Although the price movements for these leading cryptocurrencies remain subdued, there is potential for short-term relief in the coming hours.
As the foremost digital currency by market capitalization, Bitcoin is currently valued at over $87k per coin; however, it may face additional declines shortly. Nic Puckrin, an investment analyst and co-founder of Coin Bureau, shared his insights via email to Coinjournal regarding possible further selling pressure in the days ahead. He stated that:
“Once again Bitcoin finds itself struggling – a scenario that has become increasingly familiar as we approach a disappointing fourth quarter. After dipping to around $86k recently, BTC is nearing its 100-week moving average—a significant support level positioned around $84.8k. The ongoing fears surrounding AI bubbles and uncertainties regarding future monetary policies seem to be contributing factors.”
Potential for Further Correction Ahead
The BTC/USD four-hour chart indicates bearish trends as Bitcoin has struggled since early this week. Following rejection last Friday, its value has plummeted by 7% since then.
This Monday saw BTC testing support at $85,569 successfully; this held firm enough for it to reach approximately $87,500 on Wednesday.
If downward momentum persists and daily candles close below the support level of $85,569 once more,
Bitcoin could potentially drop towards the psychological threshold of $80k.
The Relative Strength Index (RSI) on this four-hour chart stands at 38—below its neutral point of 50—suggesting increasing bearish momentum.
Additionally,
the convergence seen in Moving Average Convergence Divergence (MACD) lines supports this negative outlook further.
However,
should bullish activity resume,
Bitcoin might surge towards
$94 ,253 , which corresponds with a key Fibonacci retracement level set at 61 .8 % .