Bitcoin (BTC) extended its pullback, although support at $37,500 could stabilize the down move. There is risk of a breakdown in price, especially if momentum signals remain negative.Read MoreFeedzy
The cryptocurrency is attempting to maintain a series of higher price lows since Jan. 24, which typically coincides with rising price momentum. This time, however, a bearish setup on the monthly chart could increase the risk of a breakdown in price.
Buyers will need to keep BTC elevated above $40,000, the midpoint of a three-month price range, in order to sustain the current recovery phase.
BTC’s current pullback is similar to what occurred in September of last year, when buyers began to take profits around the $46,000-$50,000 resistance zone. Still, unlike the current situation, last year’s rally above $40,000 benefitted from positive long-term momentum.
For now, BTC’s wide trading range could continue for another week until a decisive breakout or breakdown is confirmed.
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.
Bitcoin Magazine Bitcoin Price Briefly Pumps Above $94,000 As Fed Cuts Rates Bitcoin price surged…
"Powell is threading the needle between their two mandates," said one analyst.Read MoreCoinDesk: Bitcoin, Ethereum,…
Crypto analyst Bull Theory has explained why the Bitcoin price has been crashing recently. The…
In a move that could signal a bullish shift for Bitcoin (BTC) and the broader…
Despite a noticeable cooldown in trading volumes, Bitcoin’s underlying market structure has continued to strengthen.…
Bitcoin Magazine SpaceX Moves $95M in Bitcoin Ahead of Potential Mega IPO SpaceX moved another…