Bitcoin (BTC) continued to bounce around the $40,000 price level this week, indicating uncertainty among market participants.
The cryptocurrency is down by 8% over the past week and slightly positive over the past 30 days. Most technical indicators are neutral, although short-term buyers could remain active between the $35,000-$37,000 support zone, similar to what occurred earlier this year.
Momentum signals, per the MACD indicator, are positive on the weekly chart and negative on the monthly chart. That suggests a period of rangebound price action could persist, albeit with an average price swing of 20%.
On the weekly chart, the 100-week moving average, currently at $35,388, is an important gauge of trend support. Buyers will need to keep BTC above that level in order to sustain the recovery phase.
Still, there is strong resistance at the 40-week moving average (equivalent to 200-days), which at $46,800.
Further, an upside target at $50,966 was within close distance on March 28, although a pullback unfolded, similar to what occurred in September of last year.
For now, bullish countertrend signals will need to be confirmed with weekly price closes above $40,000.
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