Bitcoin Declines Within Range; Could Find Support at $30K

Bitcoin buyers are in profit-taking mode given strong overhead resistance.

Jul 2, 2021 at 11:26 a.m. UTC
Updated Sep 14, 2021 at 1:20 p.m. UTC

Bitcoin (BTC) selling continued during Asia hours as buyers failed to hold initial support at $34,000. Lower support is seen at $30,000, which could stabilize the current sell-off.

The downtrend since April has limited price recoveries and kept bitcoin in a tight range between $30,000 and $40,000 over the past month. However, momentum signals suggest selling pressure has weakened since the May correction, which could keep buyers active at support.

Bitcoin was trading around $32,000 at press time and is up about 4% over the past week.

  • The relative strength index (RSI) on the daily chart registered a series of higher lows since May 19. This indicates a bullish divergence which could stabilize the intermediate term downtrend in price.
  • Typically, a bullish divergence precedes a price bounce. It’s possible that bitcoin’s 20% price rise from the June 22 shakeout low around $29,000 completed the divergence signal.
  • Bitcoin will need to break above the 50-day moving average around $37,000 to encourage further upside beyond $40,000.
  • For now, buyers continue to take profits given strong overhead resistance on the chart.
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
How Do You Tax an NFT?

Plans to share bitcoin data with foreign tax authorities may be hard to adapt to transparent, decentralized blockchains – but once in place, new rules are hard to shift.

Plans to share bitcoin data with foreign tax authorities may be hard to adapt to transparent, decentralized blockchains – but once in place, new rules are hard to shift.

2
Nomura’s Digital Division to Focus on Cryptocurrencies First, DeFi Later

Phase one of Nomura’s new digital-assets division will include the top 10 cryptocurrencies, with DeFi and NFTs further down the line.

Phase one of Nomura’s new digital-assets division will include the top 10 cryptocurrencies, with DeFi and NFTs further down the line.

3
Solana, Cardano Tokens Slide Over 9% as Cryptos See Weakness Amid Poor US Consumer Data

Bitcoin lost support at $30,000 as Chinese technology stocks sold off on Thursday amid earnings worries a day after hawkish comments from the U.S. Federal Reserve.

Bitcoin lost support at $30,000 as Chinese technology stocks sold off on Thursday amid earnings worries a day after hawkish comments from the U.S. Federal Reserve.

4
Institutional DeFi Enabler? Data Firm Kaiko Probes DEX Liquidity With New Product

The data feed unpacks what’s what in Uniswap, SushiSwap, Curve Finance and Balancer asset pools.

The data feed unpacks what’s what in Uniswap, SushiSwap, Curve Finance and Balancer asset pools.