Bitcoin Stuck in Range Between $45K Support and $52K Resistance

Price indicators suggest limited downside over the short term as selling pressure slows.

Jan 3, 2022 at 7:21 p.m. UTC
Updated Jan 3, 2022 at 10:05 p.m. UTC

Bitcoin is off to a slow start as traders ring in the new year. The cryptocurrency is down about 8% over the past week as demand from buyers slowed. The current price of around $46,000 is near the bottom of a two-week-long price range, which previously led to higher bids for BTC.

The relative strength index (RSI) on the daily chart is rising from an oversold level reached on Dec. 10. This suggests selling pressure is starting to wane, especially as downside exhaustion signals appeared on the daily chart for the first time since July.

BTC will need to return above its 200-day moving average, currently at $47,962, to yield further upside targets. The next level of resistance is seen at around $52,000, which could limit short-term gains.

For now, price momentum is slowing ahead of the Asian trading day, as buyers and sellers appear to be in a stalemate.

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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.