Bitcoin Pullback Deepens; Minor Support at $38K-$40K
Sellers remain active at resistance levels, maintaining the short-term downtrend.
Feb 17, 2022 at 7:12 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/OCBZN5PMWFDHHMCQE243NHD24A.png)
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Bitcoin (BTC) pared earlier gains after sellers reacted to overbought conditions on the charts. Resistance between $44,000 and $46,000 capped upside moves over the past month, which contributed to price weakness.
BTC was trading at $41,000 at press time and is down 6% over the past 24 hours. Lower support at $38,000 and $40,000 could stabilize the current pullback into the Asia trading day.
The relative strength index (RSI) on the four-hour chart is oversold, similar to what occurred on Feb. 3, which preceded a 20% price jump. This time, however, the $46,000 resistance level could keep sellers active toward stronger support at $30,000.
Further, a series of higher price lows from Jan. 24 was broken on intraday charts, indicating a loss of upside 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.