BTC/USD Chart Analysis: Bitcoin Price Falls Below $90k
FXOpen
As the BTC/USD chart shows, the price of the leading cryptocurrency briefly dipped below the psychological $90k level this morning, despite trading above $94k earlier in the week.
Why is Bitcoin falling today?
Among the key drivers, the following stand out:
→ Decline in the geopolitical risk premium. Bitcoin’s rise earlier this week was supported by news of Maduro’s detention and US actions in Venezuela. However, this factor is now losing relevance.
→ Ahead of key macroeconomic data. On Friday, the US Nonfarm Payrolls report is due to be released. Recent ADP Employment Change data suggest that Friday’s figures could point to a recession in the US. In such an environment, traders may seek to reduce exposure to risk assets.
Technical analysis of the BTC/USD chart
On 18 December, we discussed Bitcoin’s price action within a system of two channels, which remain relevant. This week, as indicated by the red arrow:
→ the channel median acted as resistance;
→ on the CME exchange, futures prices posted a false bullish breakout above the December high (A).
These observations suggest that bears retain strength in the medium term. However, a sharp rebound from the $90k level (marked by the black arrow) points to renewed bullish activity. Therefore, if bears are indeed targeting a break below the lower boundary of the ascending channel, they will need to exert considerable pressure to push BTC/USD below this key psychological level.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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