Categories: Bitcoin Latest News

Bitcoin Extends Pullback Toward $37K-$40K Support Zone

Bitcoin (BTC) continues to decline from key resistance levels, indicating a loss of short-term momentum. Support around $37K-$40K remains intact, which could stabilize the down move. On the weekly chart, conditions are still neutral, benefitting short-term trades.Read MoreFeedzy

Bitcoin (BTC) was unable to catch a bid after overbought conditions appeared on the charts earlier this week. The pullback generated a loss of upside momentum, although lower support around $37,000-$40,000 could stabilize the down move.

BTC was trading around $40,600 at press time and is up 3% over the past week.

Resistance at $46,700 remains intact, which capped a series of price rallies since the Jan. 24 low at $32,930. That could signal an extended period of consolidation, especially as trading volume continues to fade.

Still, there is potential for higher volatility this month. Bitcoin has been capped within the $30,000-$69,000 price range over the past year – a wide trading zone with sharp price swings.

The previous trading range from May to October 2020 resulted in a strong rally. This time, however, monthly momentum gauges are at an all-time low, which lowers the chance of a significant upside move in March and April.

For now, market conditions are tradable (small position sizes and tight stop losses) from a short-term perspective. And over the long-term, the 40-week moving average, which is currently neutral/flat, has been a useful guide for trend direction.

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.

Recent Posts

Le Bitcoin va atteindre 140 000 $, selon trois IA gérant un fonds d’investissement de 30 millions de dollars

Intelligent Alpha construit des portefeuilles en s'appuyant sur des choix d'investissement basés sur l'IA. L’entreprise…

54 minutes ago

Bitcoin Taker Buy/Sell Ratio Surges On Major Exchanges — Who Is Buying?

The price of Bitcoin has somewhat cooled off, struggling to reach the highly-coveted $100,000 mark,…

12 hours ago

Bitcoin Rally Benefits From US Buyers – Coinbase Premium Gap Reveals Strong Demand

Bitcoin has surged past the $99,800 mark, setting another all-time high as it inches closer…

15 hours ago

Analyst Sounds Bearish Alarm For Bitcoin As $100,000 Presents Psychological Resistance

Despite heightened expectations for the Bitcoin price to hit the $100,000 milestone, a crypto analyst…

21 hours ago

Bitcoin Funding Rates Surge 20% On Major Exchanges — What’s Happening?

The price of Bitcoin picked up this week from where it left off in the…

1 day ago

This Analyst Correctly Predicted The Bitcoin Price Jump To $99,000, But His Prediction Is Not Done

A crypto analyst who accurately forecasted the Bitcoin price increase to the $99,000 All-Time High…

1 day ago