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Bitcoin Holds Short-Term Support; Faces Resistance at $40K
BTC re-tested minor support around $30,000 over the weekend, but stronger support is seen around $27,000.
Updated Mar 6, 2023, 3:21 p.m. Published May 24, 2021, 11:29 a.m. 1 min read
Bitcoin (BTC) remained under pressure over the weekend as traders react to China’s latest news about tightening crypto regulation. The cryptocurrency is down about 36% month to date and was trading around $37,000 at the time of writing. Price recoveries should remain limited to $40,000 as the broader uptrend weakens.
Slowing momentum has been the dominant theme this year as bitcoin failed to maintain all-time highs. Long term sell signals were in place before headlines accelerated price declines, which preceded a gradual and then sudden capitulation of long positions.
- The relative strength index (RSI) on the four-hour chart has struggled to break above neutral over the past week. In a downtrend, oversold readings can persist for extended periods, which suggests a lack of significant support levels.
- Bitcoin re-tested minor support around $30,000 over the weekend, but stronger support is seen around $27,000.
- BTC is trading below the 100-day moving average and the correction does not appear exhausted at current levels. This means sellers should remain active as bitcoin struggles to break above $40,000.
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"An Agreement has been largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other Countries," wrote President Trump late Saturday afternoon.
What to know:
- Down sharply earlier Saturday, bitcoin moved to gains on the day after President Trump announced a peace agreement with Iran and other Middle Eastern countries.
- As part of the deal, Trump said, the Strait of Hormuz will be reopened.
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