Bitcoin Selling Intensifies; Support at $30K Could Stabilize Correction
There are initial signs of downside exhaustion, although upside appears limited.
Feb 24, 2022 at 4:27 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/CYBQC2NQLZDYFMKRQ2BDMVLCQA.png)
Bitcoin daily chart shows support/resistance with RSI on bottom (Damanick Dantes/CoinDesk, TradingView)
Bitcoin (BTC) extended losses during the Asia trading day and broke below intraday support at $36,500. The cryptocurrency appears to be stabilizing, although stronger support is seen at $30,000.
BTC was trading around $36,000 at press time and is down 6% over the past 24 hours. For now, upside remains limited beyond the $38,000-$40,000 resistance zone.
On the daily chart, downside exhaustion signals are starting to appear, similar to what occurred on Jan. 24, which preceded a 30% price jump. This time, however, the relative strength index (RSI) is not deeply oversold, which could delay a potential upswing in price.
Momentum signals remain negative on weekly and monthly charts. That means BTC is vulnerable to further declines. The next two weeks will be critical to determine if buyers have enough conviction to defend the $28,000-$30,000 support zone.
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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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