Bitcoin Breaks Below $42K; Next Support at $34K as Intermediate Trend Turns Bearish

The next level of support is seen at around $34,000, which could stabilize the sell-off.

AccessTimeIconMay 19, 2021 at 11:31 a.m. UTC
Updated Sep 14, 2021 at 12:57 p.m. UTC

Bitcoin (BTC) sellers are in control as the cryptocurrency broke below initial support at $42,000 on Tuesday. BTC was trading around $39,000 at the time of writing and could see further declines towards the next level of support around $34,000. Price recoveries should remain limited at short-term resistance levels between $42,000 and $45,000.

  • The relative strength index (RSI) on the daily chart has been oversold for the past few days. However, an oversold reading of 25 is not as deep as the March 2020 reading around 14, which suggests selling pressure could persist over the short term.
  • The weekly RSI continues to recede from extreme overbought levels and is not yet oversold. This indicates further selling pressure towards lower support zones.
  • The next level of support is seen at around $34,000, which could stabilize the sell-off.
  • The intermediate-term trend is shifting from bullish to bearish as price is roughly 20% below the 100-day moving average.
  • Bitcoin is now down about 30% month to date and has ended months of consolidation to the downside. Breakdowns typically lead to rising volatility and longer drawdown periods.  
CoinDesk - Unknown


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.