Bitcoin in Pullback Mode, Support at $40K-$42K
Initial support is seen at $40K-$42K, which could stabilize the pullback.
Updated May 11, 2023 at 4:33 p.m. UTC
![Bitcoin daily price chart (CoinDesk, TradingView)](https://www.coindesk.com/resizer/cyxGdbIl8j042hHUD4mBiE0e1PI=/567x425/filters:quality(80):format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/XTPVFC6SCFAQBDOZOW2BKJRK34.png)
Bitcoin (BTC) sellers were active over the weekend as the cryptocurrency’s price dipped below the 200-day moving average at $45,000. Initial support is seen in the $40,000-$42,000 range where a breakout occurred on Aug. 6.
The $50,000 resistance level was tested several times over the past few weeks, although buyers ultimately took profits as overbought signals appeared on the charts. BTC was trading at around $44,200 at press time and is down 5% over the past 24 hours.
- The relative strength index (RSI) on the daily chart dipped below the 50 neutral level and is not yet oversold. That suggests a period of consolidation could persist between $40,000 support and $50,000 resistance.
- On the four-hour chart, the RSI is the most oversold since Sept. 8, which preceded a brief price bounce after a 19% sell-off.
- Short-term buying could occur, although upside appears to be limited beyond $50,000 given strong overhead resistance.