Bitcoin’s value is currently stabilizing just under the $90,000 threshold after enduring several weeks of downward pressure. Buyers are striving to maintain a foothold in the mid-range price levels; however, momentum across longer timeframes remains subdued. The present price movement indicates a brief respite, yet overall market sentiment suggests that institutional investors remain cautious.
Technical Overview of Bitcoin’s Price
By Shayan
Analysis on the Daily Chart
Examining the daily timeframe reveals that Bitcoin continues to trade within a descending channel established over recent months. The 100-day and 200-day moving averages hover above current prices, serving as resistance points near $103,000 and $108,000 respectively. Attempts to rally have so far been constrained within this downtrend channel.
The critical support level stands at $80,000—a zone tested twice already. Should this support fail to hold, the next significant demand area is anticipated around $72,000. Meanwhile, the Relative Strength Index (RSI) is beginning an upward turn from oversold conditions which hints at short-term bullish potential; however, no decisive reversal has emerged yet.
Insights from the 4-Hour Chart
The four-hour chart shows Bitcoin breaking down from an ascending wedge pattern formed earlier in December. After dipping below $90K lows briefly, buyers are attempting to regain control but with insufficient trading volume backing their efforts.
The price action aims to form a local higher low but retains an overall bearish structure. Resistance near $88K—previously support—has caused visible rejection recently. If buyers fail to reclaim this level soon enough, another test of support around $80K appears likely.
The RSI has rebounded somewhat but remains below 60 indicating limited buying strength for now. Consequently there remains considerable risk for further declines unless Bitcoin can push back above $90K promptly.
Market Sentiment Analysis
Status of Coinbase Premium Index for Bitcoin
The Coinbase Premium Index continues showing negative readings which reflect ongoing selling pressure predominantly from U.S.-based institutional participants over recent months without signs of reversal yet.
This pattern reveals that during every minor price surge stronger negative premiums occur—implying large holders on Coinbase are offloading assets when prices rise temporarily. Until this index shifts into positive or neutral territory macro-level upside potential will stay limited.
In summary: sentiment among U.S institutions remains risk-averse confirming they are not prepared for aggressive accumulation at present times.