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Bitcoin Holds Support Above $40K; Initial Resistance at $46K

Bitcoin (BTC) is holding above $42K as buyers remain active at lower support levels. The cryptocurrency faces initial resistance at $46K, which could stall the price jump. Short-term signals are bullish.Read MoreFeedzy

Bitcoin (BTC) pullbacks have been limited during the Asia trading day, suggesting that buyers could remain active above the $40,000 support level. There is room for additional upside, although resistance at $46,700 could stall the price bounce.

The cryptocurrency was trading around $42,300 at press time and is roughly flat over the past 24 hours.

Bitcoin’s trading volume remains low relative to prior highs, although a decisive breakout above $46,000 could encourage additional buying activity. For now, BTC remains in a month-long trading range and is attempting to reverse a four-month long downtrend.

Elsewhere, the recent outperformance in alternative cryptocurrencies (altcoins) such as ether (ETH) relative to bitcoin indicates bullish sentiment among traders. That means higher trading ranges are expected over the short term.

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