Bitcoin Holds Short-Term Support at $46K; Resistance at $50K

The tight price range could persist into the Asia trading day.

Dec 14, 2021 at 8:12 p.m. UTC
Updated Dec 14, 2021 at 8:35 p.m. UTC

Bitcoin (BTC) is holding steady around the $46,000 support level as oversold signals appear on the charts. This means short-term buyers could remain active into the Asia trading day, although upside appears to be limited toward $50,000.

The tight trading range over the past two weeks coincided with slowing price momentum. Typically, trading volume declines when prices move sideways until a decisive breakout or breakdown is realized.

On the daily price chart, initial signs of downside exhaustion have appeared for the first time since July, which preceded a price recovery. Still, these signals are not yet confirmed, especially because multiple oversold readings have not resulted in a meaningful price bounce over the past two weeks.

For now, the intermediate-term uptrend remains weak given the downward sloping 100-period moving average on the four-hour price chart. There is also strong resistance up ahead, which could keep sellers in control.

DISCLOSURE

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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.

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