Bitcoin Holds Short-Term Support; Faces Resistance at $40K

BTC re-tested minor support around $30,000 over the weekend, but stronger support is seen around $27,000.

May 24, 2021 at 11:29 a.m. UTC
Updated Sep 14, 2021 at 12:59 p.m. UTC

Bitcoin (BTC) remained under pressure over the weekend as traders react to China’s latest news about tightening crypto regulation. The cryptocurrency is down about 36% month to date and was trading around $37,000 at the time of writing. Price recoveries should remain limited to $40,000 as the broader uptrend weakens.

Slowing momentum has been the dominant theme this year as bitcoin failed to maintain all-time highs. Long term sell signals were in place before headlines accelerated price declines, which preceded a gradual and then sudden capitulation of long positions.

  • The relative strength index (RSI) on the four-hour chart has struggled to break above neutral over the past week. In a downtrend, oversold readings can persist for extended periods, which suggests a lack of significant support levels.
  • Bitcoin re-tested minor support around $30,000 over the weekend, but stronger support is seen around $27,000.
  • BTC is trading below the 100-day moving average and the correction does not appear exhausted at current levels. This means sellers should remain active as bitcoin struggles to break above $40,000.
CoinDesk - Unknown

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

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.

Trending

1
CoinDesk - Unknown
No es solo LUNA: las aplicaciones DeFi de Terra han perdido $28.000 millones

Los inversores han abandonado en gran medida el ecosistema Terra, ahora evidente en los protocolos DeFi en la blockchain, y los analistas siguen siendo escépticos sobre sus perspectivas a largo plazo.

Los inversores han abandonado en gran medida el ecosistema Terra, ahora evidente en los protocolos DeFi en la blockchain, y los analistas siguen siendo escépticos sobre sus perspectivas a largo plazo.

CoinDesk - Unknown
2
CoinDesk - Unknown
Crypto News Roundup for May 20, 2022

With bitcoin avoiding a steeper tumble and a look at what’s behind the biggest stablecoin of them all, CoinDesk’s "Markets Daily" is back with its latest news roundup.

With bitcoin avoiding a steeper tumble and a look at what’s behind the biggest stablecoin of them all, CoinDesk’s "Markets Daily" is back with its latest news roundup.

CoinDesk - Unknown
3
CoinDesk - Unknown
Bitcoin Drifts Lower, Support at $25K-$27K

BTC is roughly flat over the past week. Technical signals suggest a neutral to bearish outlook.

BTC is roughly flat over the past week. Technical signals suggest a neutral to bearish outlook.

CoinDesk - Unknown
4
CoinDesk - Unknown
The Fall of Terra: A Timeline of the Meteoric Rise and Crash of UST and LUNA

A detailed timeline of Terra's journey from its underdog start as a payments app in South Korea to a $60 billion crypto ecosystem to one of the biggest failures in crypto.

A detailed timeline of Terra's journey from its underdog start as a payments app in South Korea to a $60 billion crypto ecosystem to one of the biggest failures in crypto.

CoinDesk - Unknown