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
Updated Feb 17, 2022 at 7:22 p.m. UTC

Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

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.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

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 is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

CoinDesk - Unknown

Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

Trending

1
CoinDesk - Unknown
Terra lanzaría su nueva blockchain el sábado, seguida del airdrop de LUNA

Serán las primeras acciones de un plan más amplio para ayudar a revivir el ecosistema Terra y sus tokens.

Serán las primeras acciones de un plan más amplio para ayudar a revivir el ecosistema Terra y sus tokens.

CoinDesk - Unknown
2
CoinDesk - Unknown
The Quantum Revolution That Will Change Everything

Blockchains need to start migrating to new quantum-proof systems now otherwise they’ll be rendered worthless.

Blockchains need to start migrating to new quantum-proof systems now otherwise they’ll be rendered worthless.

CoinDesk - Unknown
3
CoinDesk - Unknown
Tether Expands With Introduction of Dollar-Pegged Stablecoin on Polygon

Tether is now available on over 11 blockchain networks.

Tether is now available on over 11 blockchain networks.

CoinDesk - Unknown
4
CoinDesk - Unknown
New Terra Blockchain Launch Expected Saturday, With LUNA Airdrop to Follow

The move is part of a broader plan to help revive the Terra ecosystem and its related tokens.

The move is part of a broader plan to help revive the Terra ecosystem and its related tokens.

CoinDesk - Unknown