Bitcoin Attempts Range Breakout, Faces Resistance at $42K
Bitcoin is attempting to break out of a monthslong range but faces resistance at $40K-$42K.
Updated Mar 6, 2023 at 3:28 p.m. UTC
![Bitcoin four-hour chart](https://www.coindesk.com/resizer/kZI_uwW4tIypWwEW3taa_lWBF8Y=/567x355/filters:quality(80):format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/5WZKRQ5GJVFZ3NWLPVSWOMEKBA.png)
Bitcoin (BTC) held support at around $34,000 over the weekend and is approaching resistance at $40,000-$42,000. The world's largest cryptocurrency has been consolidating for nearly a month as buyers established a solid base at $30,000.
A breakout from the range would yield further upside toward $50,000. Sellers, however, remain in control given the strong overhead resistance.
Bitcoin was trading at about $39,300 at press time, up about 9% over the past 24 hours.
- The short-term trend is improving as prices returned above the 100-period moving average on the four-hour chart.
- There is immediate resistance at $40,000, which could limit upside, especially as the relative strength index (RSI) appears to be overbought on the four-hour chart.
- Minor support is seen at around $34,000, which is the midpoint of the short-term range. If support holds, a decisive breakout above $42,000 could shift the downtrend from May.