Bitcoin extended its pullback during the latest trading session, sliding toward the $87,000 zone as short-term momentum indicators continued to deteriorate.
Data from Binance’s 4-hour chart shows BTC struggling to regain upside traction after failing to hold above recent local highs, with sellers maintaining control into mid-December.
Key takeaways:
Bitcoin is trading near $87,000 after renewed selling pressure on the 4-hour chart
RSI remains near oversold levels, but without a confirmed bullish divergence
MACD continues to signal bearish momentum despite slowing downside moves
At the time of writing, Bitcoin was trading around $87,300, posting losses of roughly 3% on the day and close to 2.7% over the past week. The broader market tone has turned defensive, with declining momentum and rising liquidation pressure weighing on price action.
Technical Structure Turns Fragile on the 4H Timeframe
From a technical perspective, Bitcoin’s structure has weakened notably since late November. The 4-hour chart shows a clear sequence of lower highs following the rejection near the $95,000 area earlier this month. Each recovery attempt has met selling pressure, pushing BTC gradually lower toward its current range.
Volume data suggests participation remains elevated during sell-offs, signaling that downside moves are attracting more conviction than recent rebounds. While buyers have defended the $86,500–$87,000 region so far, the lack of strong follow-through bounces highlights growing hesitation among bulls.
RSI and MACD Point to Persistent Downside Momentum
Momentum indicators reinforce the cautious outlook. The Relative Strength Index (RSI) on the 4-hour chart is hovering in the low-30s, well below neutral levels. Although this places BTC near short-term oversold territory, RSI has yet to show a decisive bullish divergence that would suggest a trend reversal is underway.
At the same time, the MACD remains firmly in negative territory. The histogram continues to print red bars, indicating that bearish momentum is still dominant despite occasional pauses in selling. Until MACD begins to flatten or cross upward, technical traders are likely to remain cautious.
Market Data Reflects Short-Term Risk-Off Sentiment
Broader market metrics mirror the technical weakness. Bitcoin’s market capitalization currently stands near $1.74 trillion, while 24-hour trading volume remains elevated at over $34 billion, suggesting active repositioning rather than complacency.
Short-term performance metrics also point to sustained pressure, with BTC down more than 3% over the past hour, 2% on the day, and nearly 3% over the last seven days. This combination of declining price and steady volume often reflects distribution rather than panic, indicating traders are gradually reducing exposure instead of rushing for the exits.
What Traders Are Watching Next
With momentum still skewed to the downside, market participants are closely monitoring whether the $86,000–$87,000 area can continue acting as a support base. A sustained break below this zone could expose Bitcoin to a deeper retracement, while stabilization here may open the door for a short-term relief bounce.
For now, the technical picture suggests Bitcoin remains in a consolidation-to-corrective phase, with sentiment leaning cautious as traders wait for clearer signals from momentum indicators and price structure.
