Bitcoin Rises Above $42K; Resistance at $46K-$50K
Momentum is turning bullish over the short term.
Mar 22, 2022 at 5:45 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/N43O35ZSABAQZLFB7QVYAG4M5E.png)
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Bitcoin (BTC) is holding support above $40,000 as short-term momentum signals improve. For now, pullbacks appear to be limited, which means buyers could remain active toward the $46,000-$50,000 resistance zone.
The cryptocurrency is up 4% over the past 24 hours and is attempting to establish a higher price range on the charts.
A decisive breakout above $46,000 is needed to shift the four-month-long downtrend. Typically, price rallies stall after retracing 50% of the prior down move, similar to what occurred in September 2021 around the $50,000 price level.
The relative strength index (RSI) on the daily chart remains in bullish territory (above 50), indicating renewed buying activity. On the weekly chart, momentum indicators are on the verge of turning positive for the first time since August, which preceded a strong price rally.
Still, a bearish set-up remains on the monthly chart, which means upside could be limited.
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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.