Bitcoin's Rally Faces Initial Resistance at $45K-$47K, Support Is at $40K

BTC has confirmed a break above its two month-long downtrend.

AccessTimeIconFeb 7, 2022 at 7:07 p.m. UTC
Updated May 11, 2023 at 3:40 p.m. UTC

Bitcoin (BTC) maintained support above $40,000 over the weekend and is up 6% over the past 24 hours.

The cryptocurrency was trading at around $44,200 at press time and has confirmed a break above its two month-long downtrend.

The intermediate-term outlook has become less bearish for BTC given the recent price bounce. That means buyers could remain active toward the next level of resistance of $45,000 to $47,000. At that point, a brief pullback is to be expected after retracing 38% of the prior downtrend.

The relative strength index (RSI) on the daily chart is not yet overbought, which leaves additional room for price gains this week. Buying activity has stalled over the past few weeks after the RSI first signaled oversold conditions on Dec. 10.

Still, momentum signals remain negative on the weekly and monthly chart, indicating some caution behind the latest price rally.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Damanick Dantes

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.