Bitcoin Drifts Lower, Risks Testing $40K Support

A breakdown could damage the intermediate-term trend despite oversold signals.

AccessTimeIconDec 13, 2021 at 7:20 p.m. UTC
Updated Dec 13, 2021 at 7:41 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) remains under pressure as buyers failed to break above $50,000 over the past week.

The cryptocurrency is down about 6% over the past 24 hours and was trading around $47,300 at the time of publication.

Immediate support is seen at the 200-day moving average (around $46,700), which is also the bottom of a weeklong price range. Given negative momentum signals, however, bitcoin is at risk of breaking below support, which could damage the intermediate-term trend.

For now, the relative strength index (RSI) is the most oversold since May, which could encourage short-term buying. Still, upside appears to be limited toward the $50,000 resistance level.

If a breakdown occurs, the next level of support is seen around $40,000, which could stabilize the decline.

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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.