Bitcoin Drops Below $43K; Support at $35K-$40K
Technical indicators are neutral, although oversold conditions could keep short-term buyers active.
Feb 11, 2022 at 7:38 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/KQ2CMZFVZZD7BMW32FYUG6OCQ4.png)
Bitcoin daily price chart shows nearby resistance with RSI on bottom (Damanick Dantes/CoinDesk, TradingView)
Bitcoin (BTC) sellers were active after buyers failed to sustain a break above $45,0000 this week. The cryptocurrency is down 4% over the past 24 hours, although initial support at $40,000 could stabilize the pullback.
The relative strength index (RSI) on the daily chart approached oversold territory on Wednesday, which preceded the recent downturn in price. On the weekly chart, however, the RSI is rising from oversold levels similar to what occurred in March 2020, which could keep buyers active over the short term.
Momentum indicators improved on the weekly chart after BTC rose 4% over the past seven days. That suggests a neutral outlook so long as support holds above $35,000-$40,000 over the weekend.
Still, the monthly chart appears bearish similar to July 2018, which was the middle of a crypto bear market.
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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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