Bitcoin Pullback Deepens, Support at $37K

Bitcoin (BTC) extended its decline on Tuesday, although support at $37,500 could stabilize the down move.

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.