Bitcoin Extends Pullback; Support at $37K, Resistance at $46K

BTC has been struggling to sustain positive momentum over the past few days.

AccessTimeIconApr 22, 2022 at 6:12 p.m. UTC
Updated May 11, 2023 at 4:50 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Bitcoin (BTC) dipped below $40,000 on Friday, the midpoint of a three-month long trading range. The cryptocurrency could find support at $37,500, although upside appears to be limited toward the $46,000 resistance level.

BTC was trading around $39,400 at press time and is down by 5% over the past 24 hours. So far this year, BTC is down by 17%, compared with a 9% loss in the S&P 500 and a 6% gain in gold over the same period.

A positive momentum signal on bitcoin's daily chart was invalidated on Thursday, which typically precedes a period of price weakness. On the weekly chart, however, momentum remains slightly positive, suggesting that rangebound trading could persist over the next few days.

Most technical indicators are neutral, although a significant loss of upside momentum on the monthly chart increases the probability of a break below BTC's year-long price range. Further, the recent increase in sell volume relative to buy volume means traders have been reluctant to maintain long positions after the 2020 crypto rally.

For now, the upward sloping 100-week moving average, currently at $35,693, has kept the uptrend intact. If price breaks below that level, the next support zone is between $27,000-$30,000.


Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Damanick Dantes

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.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.