Key takeaways
- BTC is up by less than 1% and is now trading above $87k.
- It could surge towards $90k as bullish momentum builds.
Bitcoin tops $87k despite poor institutional demand
BTC, the leading cryptocurrency by market cap, is trading above the $87k level after adding less than 1% to its value in the last 24 hours. The positive performance comes after Bitcoin dipped to the $86k support level a few hours ago.
The rally also comes despite declining institutional demand in the market. Data obtained from SoSoValue shows that spot Bitcoin ETFs recorded an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals since December 18.
With the holidays, Bitcoin has reclaimed the $87k and could rally towards $90k in the near term. However, if the outflows continue and intensify after the holidays, Bitcoin’s price could see further correction.
BTC eyes $90k as technical indicators improve
The BTC/USD 4-hour chart is bullish and efficient despite the choppy price action in recent days. The technical indicators have improved, suggesting that the bulls are slowly regaining control of the market.
The Relative Strength Index (RSI) on the 4-hour chart stands at 49, close to the neutral 50, suggesting that the bulls are regaining control of the market. The MACD lines are also converging, indicating a building bullish bias.
If the recovery continues, Bitcoin could rally towards the next major resistance level at $90,533. This resistance has proven to be hard for Bitcoin to overcome in recent weeks, and we could expect another reaction from this level.
If this level is surpassed, Bitcoin could rally towards the $94k resistance for the first time since December 10.
However, if the bears regain control of the market, Bitcoin could likely retest the December 18 low of $84,633 in the near term.