Bitcoin Extends Pullback; Support at $37K, Resistance at $46K
BTC has been struggling to sustain positive momentum over the past few days.
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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, 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.