Bitcoin (BTC) relief rally could stall around $46K, although stronger resistance is seen around $51K. Lower support levels could stabilize pullbacks, especially as indicators improve on the weekly price chart.Read MoreFeedzy
Bitcoin (BTC) appears to be overbought on intraday charts, which typically leads to a short-term pullback in price. The cryptocurrency faces initial resistance near $46,000, which is the top of a three-month long trading range. Still, support between $40,000-$42,000 could stabilize pullbacks.
BTC was trading around $44,400 at press time and is up 5% over the past week.
On the weekly chart, BTC established a higher price low relative to the June 2021 bottom around $28,800. The latest cycle low was achieved this year on Jan. 24 at $33,100, indicating renewed buying strength. Further, momentum signals are on the verge of turning positive, which could support a short-term relief rally.
Stronger resistance is seen at $50,996, which is a 50% retracement of the prior downtrend. At that point, BTC’s rally could stall, similar to what occurred in September 2021. This time, however, seasonal strength between April and May could keep buyers active, albeit within a year-long trading range.
On the monthly chart, momentum signals remain negative. That means upside is limited because of strong overhead resistance emanating from the April and November price peaks.
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.
Michael Saylor says the US should and will build a reserve of bitcoin and explains…
Ever since its 2009 development by the mysterious Satoshi Nakamoto, Bitcoin has become foundational to…
With the price surging above $90,000, you’re likely all too aware that everything that isn’t…
While the last year or two have seen a number of proposals for covenant-proposing extensions…
Picture this, dear reader: It’s 2016, and for the princely sum of $288,400, you could…
Follow Nikolaus On X Here Today, Fox Business’s Eleanor Terrett revealed that the Pennsylvania House…