Bitcoin Holds Support at $27K-30K; Resistance at $35K

A brief relief bounce is likely, similar to what occurred in late February and late March.

AccessTimeIconMay 23, 2022 at 6:40 p.m. UTC
Updated May 23, 2022 at 6:57 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 traded in a tight range between $28,500 and $30,000 over the past week. Despite short-term swings, the cryptocurrency has managed to hold support above $27,000, which could keep some buyers active.

BTC was trading around $30,100 at press time Monday Eastern Time and is roughly flat over the past 24 hours.

Momentum signals are improving on the daily chart, similar to what occurred in late February and late March. Further, the relative strength index (RSI) on the daily chart continues to rise from oversold levels, which could point to a relief bounce in price.

Still, the daily RSI will need to rise above 50 to determine if a price bounce has staying power.

On the weekly chart, the RSI is the most oversold since March 2020, although momentum signals remain negative. That suggests upside could be limited for BTC, initially toward the $33,000-$35,000 resistance zone.

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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.

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.