Bitcoin Stalls Near Resistance; Lower Support at $40K

Overbought signals on intraday charts preceded the current pullback.

By Damanick Dantes

Feb 8, 2022 at 7:56 p.m. UTC

Updated Feb 8, 2022 at 11:12 p.m. UTC

Bitcoin four-hour price chart shows support/resistance with RSI on bottom (Damanick Dantes/CoinDesk, TradingView)

Alex Thorn

Head of Firmwide Research

Galaxy

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Alex Thorn

Head of Firmwide Research

Galaxy

Hear Alex Thorn share his take on "Bitcoin and Inflation: It’s Complicated” at Consensus 2023.

Secure Your Seat

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.

Alex Thorn

Head of Firmwide Research

Galaxy

Hear Alex Thorn share his take on "Bitcoin and Inflation: It’s Complicated” at Consensus 2023.

Secure Your Seat

Alex Thorn

Head of Firmwide Research

Galaxy

Hear Alex Thorn share his take on "Bitcoin and Inflation: It’s Complicated” at Consensus 2023.

Secure Your Seat

Bitcoin (BTC) reached a high of $45,488 over the past 24 hours, near a key resistance zone that preceded the current pullback. The cryptocurrency could find lower support at $40,000 into the Asia trading day.

The relative strength index (RSI) on the four-hour chart is declining from overbought territory, similar to what occurred in late December amid a short-term downtrend. This time, however, bitcoin has broken above previous resistance levels, which means the current pullback could stabilize soon.

One concern is the low conviction among buyers, evidenced by low trading volume during the recent price rally. Low volume rallies typically result in pullbacks or range-bound trading before a more definitive price bottom is confirmed.

Bitcoin was trading around $43,000 at press time and is down 2% over the past 24 hours.

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