Bitcoin Declines From Resistance, Approaches $40K Support

The intermediate-term trend is weakening, although support at $40K could stabilize the pullback.

AccessTimeIconSep 28, 2021 at 11:18 a.m. UTC
Updated Sep 28, 2021 at 8:32 p.m. UTC

Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

Bitcoin (BTC) is trading lower after sellers responded to resistance near $45,000. The cryptocurrency is down about 4% over the past 24 hours to $41,909 as upside momentum slows.

Support is nearby at $40,000, which could stabilize the pullback.

  • The 100-period moving average on the four-hour chart continues to cap upside moves. That suggests buyers are losing strength after failing to sustain a breakout above $50,000 resistance earlier this month.
  • The relative strength index (RSI) on the four-hour chart is neutral after reaching overbought levels last week, which preceded a brief 14% price bounce.
  • On the hourly chart, the RSI is the most oversold since Sunday, suggesting intraday buyers could remain active, albeit briefly toward $43,000-$45,000 resistance.
  • And on the weekly chart, upside momentum has slowed over the past two months, indicating a weaker uptrend as price increases remain limited.

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Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

CoinDesk - Unknown

Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.