Bitcoin Holding Support; Resistance at $43K
The current price action is similar to what occurred in 2018-2019.
Apr 28, 2022 at 6:01 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/ZBSWHEGZSVFNXLNS6T6VBR7U7I.png)
Bitcoin daily chart shows support/resistance, with RSI on bottom. (Damanick Dantes/CoinDesk, TradingView)
Bitcoin (BTC) remains in a tight trading range with support at $37,500 and initial resistance at $43,000.
The cryptocurrency was trading around $39,000 at press time and is down 2% over the past week. BTC appears to be stabilizing on intraday charts, although upside could be limited into the Asia trading day.
Momentum signals have weakened over the past week, which typically precedes a period of flat to negative price action. For now, buyers have kept prices anchored around the $40,000 price level, albeit unwilling to decisively break above the $46,710 resistance level over the past three months.
A negative reading on weekly momentum indicators is on watch, which could increase the chance of a price breakdown.
Still, BTC is a few days away from registering a bullish countertrend signal, per the DeMARK indicators, which could delay the formation of an intermediate-term downtrend.
The current price action is similar to what occurred in 2018 and 2019, which was a long period of choppy trading and relatively low returns, similar to equities. At that point, the bitcoin price range was roughly $6,000 to $9,000.
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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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