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
Updated Jan 12, 2022 at 7:39 p.m. UTC

Bitcoin (BTC) buyers held support around $40,000 as oversold signals appeared on the charts.

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.

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.