Bitcoin Approaching $40K Resistance Zone; Support at $37K
A volatile breakout or breakdown is likely this week.
Mar 15, 2022 at 6:02 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/JX64NCI5JNGDVHB4CYMWHRKBGI.png)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
Bitcoin (BTC) is recovering after multiple setbacks from the $40,000 resistance zone. Technical indicators are mostly neutral and trading volume is low, suggesting a breakout or breakdown is likely this week.
BTC was trading around $39,300 at press time and is roughly flat over the past week.
So far, buyers have maintained a strong support base around $37,000, which could limit pullbacks over the short term. The significant loss of downside momentum on the weekly chart could also encourage buying activity, especially if a breakout above $40,000 occurs.
On the monthly chart, however, momentum signals are negative, which means upside could be limited toward the $46,700 resistance level.
:format(webp)/www.coindesk.com/resizer/XTMlnvzxCMnzHK_npTPd1O1pxuk=/arc-photo-coindesk/arc2-prod/public/AYI2A2FHEBFJJNFJQRYJ7H4BGA.png)
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.