Bitcoin Stabilizes Above $40K Support; Resistance Near $45K

Buyers could respond to short-term oversold signals, although upside appears limited.

Jan 10, 2022 at 7:37 p.m. UTC
Updated Jan 10, 2022 at 7:45 p.m. UTC

Bitcoin (BTC) selling pressure is starting to wane after last week’s price dip. The cryptocurrency is holding short-term support at around $40,000, although upside appears to be limited near $43,000-$45,000.

BTC is down about 2% over the past 24 hours, although the price action has been fairly muted over the past few days.

The relative strength index (RSI) on the four-hour chart is rising from oversold levels, which typically precedes a brief price bounce. On the daily chart, the RSI is the most oversold since Dec. 10.

Upside momentum has weakened given BTC’s two-month long downtrend. This means sellers could remain active around resistance levels.

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.