Despite a rough start to the week, the crypto market is showing some signs of life as major coins like Bitcoin (BTC), Ethereum (ETH), and XRP move into positive territory on Wednesday. While prices are still weak overall, there may be a short-term bounce in play.

Bitcoin is currently trading above $87,000, but it’s still facing downward pressure. Analysts are warning that more losses could be ahead in the coming days. One market expert pointed out that Bitcoin’s recent dip to around $86,000 puts it dangerously close to its 100-week moving average, which sits at about $84,800 — a key support level. Concerns about AI market bubbles and uncertain monetary policies are continuing to weigh heavily on investor sentiment.

Looking at the technical charts, Bitcoin is still in a bearish pattern. After facing rejection last Friday, BTC has dropped around 7% and retested the $85,569 support level on Monday. That support held for now, helping Bitcoin rebound slightly to $87,500 by midweek.

However, if Bitcoin falls below the $85,569 mark and closes the day lower, we could see a drop toward the critical psychological level of $80,000.

Technical indicators are also flashing warning signs. The Relative Strength Index (RSI) on the 4-hour chart is at 38, which is below the neutral level of 50, suggesting that sellers are in control. Additionally, the MACD (Moving Average Convergence Divergence) lines have started to converge, which typically signals increasing bearish momentum.

In summary, while there’s been a slight midweek recovery in Bitcoin and other top cryptocurrencies, the overall trend remains weak. Traders and investors should watch key support levels closely and prepare for potential further declines.