Bitcoin (BTC) extended losses from the Asia trading day, although lower support at $30K could stabilize the correction. There are initial signs of downside exhaustion worth monitoring. Still, momentum signals remain negative, which suggests limited upside from here.Read MoreFeedzy
Bitcoin (BTC) extended losses during the Asia trading day and broke below intraday support at $36,500. The cryptocurrency appears to be stabilizing, although stronger support is seen at $30,000.
BTC was trading around $36,000 at press time and is down 6% over the past 24 hours. For now, upside remains limited beyond the $38,000-$40,000 resistance zone.
On the daily chart, downside exhaustion signals are starting to appear, similar to what occurred on Jan. 24, which preceded a 30% price jump. This time, however, the relative strength index (RSI) is not deeply oversold, which could delay a potential upswing in price.
Momentum signals remain negative on weekly and monthly charts. That means BTC is vulnerable to further declines. The next two weeks will be critical to determine if buyers have enough conviction to defend the $28,000-$30,000 support zone.
DISCLOSURE
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.
