Bitcoin Holding Support at $30K, Resistance at $35K

BTC's volume uptick is an initial sign of capitulation, but upside remains limited.

May 10, 2022 at 5:21 p.m. UTC
Updated May 10, 2022 at 8:03 p.m. UTC

Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

Bitcoin (BTC) stabilized at around the $30,000 support level, which could keep short-term buyers active. Still, upside appears to be limited, initially toward the next resistance level at $35,000.

BTC was trading at about $31,300 at press time and is roughly flat over the past 24 hours. It's down by 16% over the past week. Several alternative cryptos (altcoins) are outperforming BTC over the past 24 hours, suggesting a greater appetite for risk among short-term traders.

Typically, BTC declines less than altcoins during market recoveries because of its lower risk profile relative to smaller tokens.

The relative strength index (RSI) on the daily chart is rising from extreme oversold levels, which could support a brief relief rally similar to what occurred in late January. This time, however, negative momentum signals have increased the chance of additional breakdowns on the chart.

Further, the 14-day moving average of volume (based on Coinbase exchange data provided by TradingView) ticked higher, which could be an initial sign of capitulation. Still, current volume levels are lower than June of last year when BTC settled at about $30,000.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

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 is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

CoinDesk - Unknown

Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

Trending

1
CoinDesk - Unknown
Bitso, primer unicornio cripto de América Latina, despide a 80 empleados

El exchange, que tenía más de 700 empleados antes de los recortes, cuenta con cuatro millones de usuarios en la región.

El exchange, que tenía más de 700 empleados antes de los recortes, cuenta con cuatro millones de usuarios en la región.

CoinDesk - Unknown
2
CoinDesk - Unknown
Crypto's One Unassailable Use Case: Helping Human Rights Activists

The Oslo Freedom Forum was heavy on bitcoin and stablecoin discussions, underscoring that this technology is a tool for political dissidents, not just a get-rich-quick scheme.

The Oslo Freedom Forum was heavy on bitcoin and stablecoin discussions, underscoring that this technology is a tool for political dissidents, not just a get-rich-quick scheme.

CoinDesk - Unknown
3
CoinDesk - Unknown
Who Are We in the Metaverse, and How Do We Prove It?

Self-sovereign identity needs to be baked into the DNA of Web 3.

Self-sovereign identity needs to be baked into the DNA of Web 3.

CoinDesk - Unknown
4
CoinDesk - Unknown
Market Wrap: Bitcoin Stuck Below $30K as Buyers Remain on Sidelines

BTC declined by as much as 3% over the past 24 hours and is on track to end the month in the red.

BTC declined by as much as 3% over the past 24 hours and is on track to end the month in the red.

CoinDesk - Unknown