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Bitcoin Fades From Resistance; Support at $40K

Bitcoin (BTC) struggled to break above the $44K resistance level, although lower support at $40K could stabilize the current pullback. Stronger resistance is seen at $46K, although downside momentum could continue into the Asia trading day.Read MoreFeedzy

Bitcoin (BTC) struggled to break above the $44,000 resistance level as overbought conditions appeared on the charts. Momentum is starting to slow, which could point to a deeper pullback into the Asia trading day.

Still, buyers could remain active at lower support levels, particularly at $40,000. At that point, the pullback could stabilize on intraday charts.

On the daily chart, there is stronger resistance at $46,000, which capped the price rally in early February. Buyers will need to make a decisive break above resistance in order to reverse the three-month long downtrend.

Most indicators are neutral, although there has been a loss of downside momentum on the weekly chart, which could be a positive development this month.

BTC was trading around $43,000 at press time and is up 17% over the past week.

Bitcoin daily chart shows nearby resistance with RSI on bottom (Damanick Dantes/CoinDesk, TradingView)

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