Bitcoin Fades From Resistance; Support at $40K
Downside could persist into the Asia trading day.
Mar 2, 2022 at 6:53 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/JPG6ZTWC6NDNZFLLKCXWCWV3PY.jpeg)
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Bitcoin (BTC) struggled to break above the $44,000 resistance level as overbought conditions appeared on the charts. Momentum is starting to slow, which could point to a deeper pullback into the Asia trading day.
Still, buyers could remain active at lower support levels, particularly at $40,000. At that point, the pullback could stabilize on intraday charts.
On the daily chart, there is stronger resistance at $46,000, which capped the price rally in early February. Buyers will need to make a decisive break above resistance in order to reverse the three-month long downtrend.
Most indicators are neutral, although there has been a loss of downside momentum on the weekly chart, which could be a positive development this month.
BTC was trading around $43,000 at press time and is up 17% over the past week.
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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.