Bitcoin Downtrend Intact; Support at $37K

A decisive breakout or breakdown could occur this month.

AccessTimeIconMay 2, 2022 at 6:43 p.m. UTC
Updated May 2, 2022 at 8:09 p.m. UTC

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.

Bitcoin (BTC) has been in a short-term downtrend since late March, confirmed by a series of lower price highs. That indicates persistent selling pressure, although support at $37,500 could sustain the current price range.

Further, BTC has been anchored around $40,000, the midpoint of a three-month price range, which suggests indecision among buyers and sellers.

Typically, BTC consolidates within a three-month price range following an extreme move such as the 50% sell-offs that occurred after the April and November price peaks around $64,000 and $69,000 last year. That means a decisive breakout or breakdown could occur sometime this month.

On the weekly chart, bitcoin has experienced a loss of upside momentum, which suggests limited upside beyond the $46,000-$50,000 resistance zone. A bearish set-up on the monthly chart increases the risk of a breakdown in price.

For now, BTC is on watch for a countertrend bullish signal on the weekly chart, per the DeMARK indicators. If confirmed, BTC could experience a brief price bounce, consistent with strong seasonal trends in May.

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 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.

CoinDesk - Unknown

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.

CoinDesk - Unknown

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.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC