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Bitcoin Rising Toward $45K Resistance, Support at $40K
Downside momentum is starting to wane after a volatile month.
Updated May 11, 2023, 4:33 p.m. Published Oct 1, 2021, 12:41 a.m. 1 min read
Bitcoin buyers were active during Asian trading hours as pullbacks remain limited to the $40,000 support level. Initial resistance is seen at around $45,000, which could cap further upside over the short term.
BTC was trading at about $42,900 at press time and is down 3% over the past week. Downside momentum is starting to wane, which could keep buyers active, albeit within a range between $40,000 support and $50,000 resistance.
- The relative strength index (RSI) on the four-hour chart continues to rise from extreme oversold levels last week, suggesting that the price is starting to stabilize after a volatile month.
- The RSI on the hourly chart, however, is declining from overbought levels. That means intraday buyers are starting to take some profits, although support at $40,000-$42,000 could stabilize a brief pullback.
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Open interest held steady and funding stayed subdued during the recent liquidation wave, suggesting traders were de-risking rather than capitulating, according to HashKey Research's Tim Sun.
What to know:
- Bitcoin hovered around $77,700 after a brief drop below $77,000, with derivatives data suggesting the move was a leverage flush rather than the start of a deeper downturn.
- Analysts say the $75,000 to $77,000 range remains a key support zone, as liquidations were split between longs and shorts and did...
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