Bitcoin Pullback Deepens, Support at $37K
BTC's current pullback is similar to what occurred in September of last year, albeit with weak price momentum.
Apr 26, 2022 at 5:57 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/RVNKI4V4F5ETFDX2O7LMQIUL4Q.png)
Bitcoin daily price chart shows support/resistance (Damanick Dantes/CoinDesk, TradingView)
The cryptocurrency is attempting to maintain a series of higher price lows since Jan. 24, which typically coincides with rising price momentum. This time, however, a bearish setup on the monthly chart could increase the risk of a breakdown in price.
Buyers will need to keep BTC elevated above $40,000, the midpoint of a three-month price range, in order to sustain the current recovery phase.
BTC's current pullback is similar to what occurred in September of last year, when buyers began to take profits around the $46,000-$50,000 resistance zone. Still, unlike the current situation, last year's rally above $40,000 benefited from positive long-term momentum.
For now, BTC's wide trading range could continue for another week until a decisive breakout or breakdown is confirmed.
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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.
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