Bitcoin Rises Above $43K; Resistance at $45K-$48K
The sell-off appears exhausted as buyers attempt to reverse a short-term downtrend.
Jan 12, 2022 at 7:32 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/QOYKC5X3JBBPJI2T4IGT7UAZ2Y.png)
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The recent bounce suggests the cryptocurrency is starting to recover after a near-30% decline from its all-time high around $69,000 in November.
The relative strength index (RSI) on the four-hour chart is approaching overbought levels, similar to what occurred in late December, which preceded a brief pullback. The RSI on the daily chart, however, continues to rise from oversold levels, which means buyers could remain active on price dips.
Still, given the short-term downtrend, upside appears limited toward the $45,000-$48,000 resistance zone. And on weekly and monthly charts, momentum signals remain negative, which means price rises could be limited for now.
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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.