Key takeaways
- Bitcoin is up 1% in the last 24 hours but continues to trade below $90k.
- The performance comes despite Trump’s Davos speech on Wednesday, which ended the imposition of new tariffs on European nations against 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 in the last 24 hours, ending its six consecutive days of decline.
The price recovery comes following strengthened global risk sentiment in response to US President Trump’s U-turn on Greenland at the World Economic Forum in Davos.
On Wednesday, Trump mentioned that he had reached an agreement with the North Atlantic Treaty Organization (NATO) on a framework for a future deal on Greenland. This ended the need to impose new tariffs on European nations.
In addition to that, Trump added that he hopes to sign the bill on crypto soon, as the US Congress continues to work on a crypto market structure bill that was postponed last week by the Senate Banking Committee.
However, the positive news hasn’t affected Bitcoin’s price action as it continues to trade below the $90k threshold.
Institutional demand for Bitcoin is also on the decline. Data obtained from SoSoValue shows that spot Bitcoin ETFs recorded an outflow of $708.71 million on Wednesday, the third consecutive day of withdrawals and the highest single-day outflow since November 20.
BTC eyes $93k if the $87k support holds
The BTC/USD 4H chart is bearish and efficient as Bitcoin has lost 7% of its value over the last seven days.
It is currently trading below the 50-day Exponential Moving Average (EMA) at $92,044 and has lost the $90k psychological level. Bitcoin is trading at $89,900 after retesting the midpoint of a horizontal parallel channel at $87,787 earlier this week.
If BTC continues its ongoing recovery, it could extend the advance toward the 50-day EMA at $92,044.
The RSI on the 4-hour chart is 40, pointing upward toward the neutral 50 level, indicating fading bearish momentum. However, the RSI must stay above the 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 could extend the fall toward the next support level at $85,569.
