Bitcoin is hovering below recent highs after a modest rebound, with mixed technical signals and declining gains among leading cryptocurrencies this week.
- Bitcoin, ethereum and ripple opened the week stronger but lost momentum, with bitcoin trading below key resistance, near $86,000.
- Technical indicators point to near-term uncertainty: the RSI has risen from oversold, while the MACD points to continued buyer activity.
- The CEO of Coinbase UK notes that institutional involvement and pilot programs have increased in Europe, but the medium-term outlook for bitcoin remains optimistic.
According to market data, Bitcoin has fallen slightly over the past 24 hours, trading below recent highs around $86,000. The cryptocurrency found support at psychological price levels on Friday before trading modestly recovery.
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) opened the week with gains but have since shown waning momentum, market analysts reported. The leading cryptocurrencies are hovering around key technical levels as buyers have failed to push prices higher in the short term.
Bitcoin’s technical analysis paints a mixed picture
Technical analysis of Bitcoin’s 4-hour chart indicates bearish conditions, with the cryptocurrency failing to overcome a key resistance barrier. If the recovery continues, Bitcoin could rise to the next resistance level, according to technical indicators. Conversely, the inability to break through resistance could lead to a further decline towards key levels of psychological support.
The Relative Strength Index on the 4-hour chart fell below the oversold threshold last week, indicating that downward pressure is easing. The MACD indicator lines are approaching the bullish zone, indicating that buyers remain active in the market.
Commenting on current market conditions, Keith Grose, CEO of Coinbase UK, said: “Market conditions are changing as institutions across Europe adopt a more structured and regulated approach to digital assets. We are seeing clearer frameworks emerging, stronger infrastructure being developed and early examples of central banks and financial institutions conducting controlled pilots to build practical understanding – including the Czech National Bank’s recent decision to trial a small, ring-fenced portfolio of digital assets.”
Analysts maintain an optimistic outlook for Bitcoin’s price appreciation in the medium to long term, although near-term price action remains dependent on whether current support levels hold.
