Bitcoin Holding Support With Higher Price Lows; Resistance at $46K

There has been a loss of downside momentum on the daily chart, which could keep short-term buyers active.

Apr 20, 2022 at 6:12 p.m. UTC
Updated Apr 20, 2022 at 6:17 p.m. UTC

Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

Bitcoin (BTC) has maintained support above $37,500 over the past month, indicating a loss of downside momentum on the charts.

The cryptocurrency was trading around $41,300 at press time and is roughly flat over the past 24 hours. On intraday charts, however, BTC appears to be overbought, which could briefly stall the current upswing in price.

A series of higher price lows since Jan. 24 suggests continued buying interest around the $32,000-$37,500 support zone, which is the bottom of a year-long price range.

The next major resistance level is seen at $46,700, which has capped price rallies over the past few months. Typically, price rises begin to stall after retracing roughly 38% to 50% of the prevailing downtrend, similar to what occurred in September of last year.

Still, the significant slowdown in BTC's long-term uptrend suggests upside could be limited over the next few months.

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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

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