Bitcoin Enters Resistance Zone Between $40K-$45K

BTC appears to be overbought on intraday charts.

AccessTimeIconMar 9, 2022 at 6:50 p.m. UTC
Updated Mar 9, 2022 at 7:38 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) rallied as much as 10% over the past 24 hours as buyers reacted to short-term oversold readings.

Resistance, or the point where an uptrend is expected to pause temporarily due to a concentration of supply, at around the $40,000-$45,000 price zone could stall the current upswing, similar to what occurred last week.

The relative strength index (RSI) on the four-hour chart is oversold, which typically precedes a brief pullback in price. On the daily chart, however, the RSI is neutral, suggesting that lower support around $37,000-$40,000 could stabilize pullbacks into the Asia trading day.

For now, bitcoin remains in a tight trading range, although downside momentum has slowed over the past two months. That means bulls could remain active at short-term support levels.

BTC was trading near $42,000 at press time and is down 3% 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.

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.

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