Bitcoin price could bounce if the $85,000 support level holds
Bitcoin price faced rejection around the $95,000 level on Sunday and declined 8.54% the next day. However, on Tuesday, BTC dipped below the daily support level at $85,000 but bounces and closes above it. This daily level roughly coincides with the 200-day Exponential Moving Average (EMA) at $85,759, making it a key support zone. At the time of writing on Wednesday, it trades slightly above at around $87,600.
If the $85,000 level holds as support, BTC could extend the recovery to retest its Sunday high of $95,000.
The Relative Strength Index (RSI) reads 41 and points upwards toward its neutral level of 50, indicating mild bearish momentum. The RSI must move above its neutral level for the bullish momentum to be sustained. Such a development would add a tailwind to the recovery rally.
