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.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

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.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.