Bitcoin Weighed Down by Resistance; Support at $35K-$37K

Upside could be limited with the potential for higher volatility next week.

AccessTimeIconMar 11, 2022 at 6:57 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) continues to struggle within a choppy trading range between $37,000 and $45,000. The cryptocurrency is roughly flat over the past week, although the loss of upside momentum could keep sellers active over the short-term.

The downward sloping 100-day moving average, currently at $43,300, has weighed on price action over the past few months. That indicates a downtrend, evidenced by a series of lower price highs since November.

While the downtrend has stabilized within a tight trading range, a lower price high from March 2 indicates limited upside beyond $46,000.

Meanwhile, higher price lows from Jan. 23 have kept BTC anchored above $37,000 support in recent months. A series of higher price lows and strong overhead resistance, however, typically results in a breakout or breakdown in the direction of the prevailing trend. In this case, BTC’s downtrend could resume with higher volatility.

On the other hand, downside exhaustion signals are starting to appear across global equities, especially in Europe and Asia. That could lead to a brief short-squeeze in speculative assets next week, albeit with limited upside.

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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.