Bitcoin Returns Above $43K; Resistance Near $45K-$48K
Oversold conditions are attracting short-term buyers.
Jan 20, 2022 at 7:58 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/TJDFS2LUGBFMTPW2VK6RVWQCC4.png)
Bitcoin four-hour price chart shows support/resistance (Damanick Dantes/CoinDesk, TradingView)
Bitcoin (BTC) buyers are attempting to reverse a short-term downtrend on the charts.
Over the past two weeks, price action has been anchored around the $40,000 support level, which is where buyers previously stepped in ahead of the October price rally.
Still, the cryptocurrency could face resistance around $45,000-$48,000 as intraday signals approach overbought territory.
As of press time bitcoin was changing hands at $42,952, up 2.5% over the past 24 hours.
The 100-day moving average on the four-hour chart is sloping downwards, indicating a declining price trend over the past month. A decisive break above $43,000 could signal a positive trend shift on intraday charts.
On the daily chart, bitcoin appears to be oversold, albeit within a downtrend that began in November. That means upside could be limited given the decline in long-term momentum.
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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.
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