Bitcoin (BTC) is trading in a tight intraday range as buyers maintain support at $37K. Resistance is seen around the $43K-$45K zone, which could stall a price bounce. For now, the short-term downtrend is intact as technical indicators are neutral.Read MoreFeedzy
The cryptocurrency was trading around $38,700 at press time and is up 3% over the past 24 hours. A decisive break above $40,000 could encourage additional buying into the Asia trading day.
For now, narrow price zones could benefit short-term positioning among traders as most technical indicators are neutral.
A counter-trend exhaustion signal on the daily bitcoin chart, per the DeMARK indicators, appeared on Monday. That could point to short-term stabilization in price, although the previous signal on Dec. 29 did not result in a price bounce.
At times, when confirmed, reversal signals could be helpful for brief trades. For example, there was a technical set-up for a price reversal on Jan. 24, which preceded a 30% price rally. In a bear market, however, price swings tend to fade within the direction of the prevailing downtrend.
BTC will need to hold above $37,000 support and break through the $46,700 resistance level in order to signal a trend reversal.
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