Bitcoin Downtrend Stabilizes, Resistance at $40K-$43K

Bitcoin (BTC) is set for choppy price action, although upside appears to be limited as momentum slows. The cryptocurrency could remain in a trading range until a decisive breakout or breakdown occurs.Read MoreFeedzy

Bitcoin (BTC) is attempting to reverse a short-term downtrend on intraday charts, albeit within a three-month trading range. Choppy price action could occur as buyers try to defend support at $37,500 ahead of sell orders near the $40,000-$43,000 resistance zone.

BTC was trading at around $39,000 at press time and is up 2% over the past 24 hours. The cryptocurrency is roughly flat over the past week, reflecting uncertainty among traders.

The relative strength index (RSI) on the daily chart is hovering near oversold levels, which could keep short-term buyers active, especially if momentum signals improve.

Still, upside appears to be limited despite the potential for intraday price swings. For example, there has been a loss of upside momentum on the weekly chart, similar to what occurred last November, which preceded a price drop.

This time, however, the weekly chart isn’t overbought. That means BTC’s current price range could persist until a decisive breakout above $46,000 or breakdown below $30,000 occurs.

DISCLOSURE

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