Bitcoin (BTC) continues to decline from key resistance levels, indicating a loss of short-term momentum. Support around $37K-$40K remains intact, which could stabilize the down move. On the weekly chart, conditions are still neutral, benefitting short-term trades.Read MoreFeedzy
Bitcoin (BTC) was unable to catch a bid after overbought conditions appeared on the charts earlier this week. The pullback generated a loss of upside momentum, although lower support around $37,000-$40,000 could stabilize the down move.
BTC was trading around $40,600 at press time and is up 3% over the past week.
Resistance at $46,700 remains intact, which capped a series of price rallies since the Jan. 24 low at $32,930. That could signal an extended period of consolidation, especially as trading volume continues to fade.
Still, there is potential for higher volatility this month. Bitcoin has been capped within the $30,000-$69,000 price range over the past year – a wide trading zone with sharp price swings.
The previous trading range from May to October 2020 resulted in a strong rally. This time, however, monthly momentum gauges are at an all-time low, which lowers the chance of a significant upside move in March and April.
For now, market conditions are tradable (small position sizes and tight stop losses) from a short-term perspective. And over the long-term, the 40-week moving average, which is currently neutral/flat, has been a useful guide for trend direction.
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.
Recent U.S. economic data could prompt more hawkish forward guidance from the Federal Reserve.Read MoreCoinDesk:…
A crypto analyst has predicted when Ethereum, the world’s second-largest cryptocurrency, will bottom against Bitcoin,…
Roger Ver, a prominent early investor in Bitcoin and famously dubbed “Bitcoin Jesus,” has been…
Though Bitcoin prices are fast-dropping, looking at events in the daily chart, one analyst thinks…
Crypto analyst Ali Martinez has provided insights into why $59,800 is a crucial price level…
An analyst has explained what path Bitcoin might need to follow to surge to a…