Bitcoin is trying to recover after the plunge on Sunday, when the mark of $86,000 provided support. After touching the lows of December 19, the BTCUSD pair is showing signs of a local bounce this week.
However, for now, the recovery looks unconvincing, and the price remains below the level of $90,000, which acts as the nearest resistance.
In the short term, trading activity may remain subdued due to market caution ahead of the Fed's decision on monetary policy, which will be announced this evening.
As AI analysis of the chart $BTC conducted by the smart chatbot WarrenAI from Investing.com shows, the bearish trend persists despite the local bounce from support:
Given the current technical picture, AI suggests several trade options and explains the significance of the highlighted levels:
Speaking of key risks, WarrenAI warns of a new wave of selling in case the level of $86,000 is lost, while a sharp rise above $91,106 could trigger mass short closures:
