Bitcoin Approaches $40K; Resistance at $43K-$45K

Narrow price zones could benefit short-term trades within the prevailing downtrend.

AccessTimeIconMar 8, 2022 at 7:30 p.m. UTC
Updated Mar 8, 2022 at 7:39 p.m. UTC

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.

Bitcoin (BTC) has held support at $37,000 over the past few days, which could yield short-term upside targets toward the $40,000-$45,000 resistance zone. Support refers to the price level where a downtrend can be expected to pause because of a concentration of demand or buying interest.

The cryptocurrency was trading around $38,700 at press time and is up 3% over the past 24 hours. A decisive break above $40,000 could encourage additional buying into the Asia trading day.

For now, narrow price zones could benefit short-term positioning among traders as most technical indicators are neutral.

A counter-trend exhaustion signal on the daily bitcoin chart, per the DeMARK indicators, appeared on Monday. That could point to short-term stabilization in price, although the previous signal on Dec. 29 did not result in a price bounce.

At times, when confirmed, reversal signals could be helpful for brief trades. For example, there was a technical set-up for a price reversal on Jan. 24, which preceded a 30% price rally. In a bear market, however, price swings tend to fade within the direction of the prevailing downtrend.

BTC will need to hold above $37,000 support and break through the $46,700 resistance level in order to signal a trend reversal.

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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.

CoinDesk - Unknown

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.