Bitcoin Rangebound Above $46K Support, Resistance at $55K

Selling pressure could slow into the Asia trading day as indicators appear oversold.

Dec 8, 2021 at 6:37 p.m. UTC
Updated Dec 22, 2021 at 8:49 p.m. UTC

Bitcoin (BTC) continues to stabilize around the $50,000 price level after a near 20% sell-off over the past weekend.

For now, the cryptocurrency remains above $46,000 support, which could stabilize short-term pullbacks. Buyers will need to break above $55,000 resistance to yield further upside targets.

Momentum signals are improving on intraday charts, which suggests buyers could remain active around current support levels. And the relative strength index (RSI) on the daily chart is the most oversold since late September, which preceded a price rally.

Bitcoin is stuck in a short-term downtrend, defined by lower price highs over the past month. However, price indicators suggest selling pressure could slow into the Asia trading day. This means intraday trading volume could rise around the 100-period moving average (currently around $54,500) on the four-hour chart.

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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio manager at Cannon Advisors, which does not invest in digital assets. Damanick does not own cryptocurrencies.