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Bitcoin Drops Below $43K; Support at $35K-$40K

Bitcoin (BTC) is under pressure after approaching resistance near $45,000. Momentum indicators are improving, which could keep buyers active over the short-term.Read MoreFeedzy

Bitcoin (BTC) sellers were active after buyers failed to sustain a break above $45,0000 this week. The cryptocurrency is down 4% over the past 24 hours, although initial support at $40,000 could stabilize the pullback.

The relative strength index (RSI) on the daily chart approached oversold territory on Wednesday, which preceded the recent downturn in price. On the weekly chart, however, the RSI is rising from oversold levels similar to what occurred in March 2020, which could keep buyers active over the short term.

Momentum indicators improved on the weekly chart after BTC rose 4% over the past seven days. That suggests a neutral outlook so long as support holds above $35,000-$40,000 over the weekend.

Still, the monthly chart appears bearish similar to July 2018, which was the middle of a crypto bear market.

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