Share this article
Bitcoin Breaks Below $42K; Next Support at $34K as Intermediate Trend Turns Bearish
The next level of support is seen at around $34,000, which could stabilize the sell-off.
Updated Mar 6, 2023, 2:49 p.m. Published May 19, 2021, 11:31 a.m.
Bitcoin (BTC) sellers are in control as the cryptocurrency broke below initial support at $42,000 on Tuesday. BTC was trading around $39,000 at the time of writing and could see further declines towards the next level of support around $34,000. Price recoveries should remain limited at short-term resistance levels between $42,000 and $45,000.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
- The relative strength index (RSI) on the daily chart has been oversold for the past few days. However, an oversold reading of 25 is not as deep as the March 2020 reading around 14, which suggests selling pressure could persist over the short term.
- The weekly RSI continues to recede from extreme overbought levels and is not yet oversold. This indicates further selling pressure towards lower support zones.
- The next level of support is seen at around $34,000, which could stabilize the sell-off.
- The intermediate-term trend is shifting from bullish to bearish as price is roughly 20% below the 100-day moving average.
- Bitcoin is now down about 30% month to date and has ended months of consolidation to the downside. Breakdowns typically lead to rising volatility and longer drawdown periods.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Traders mull the bottom as bitcoin returns to week's lows below $86,000
One analyst isn't quite ready to call a bottom, but says bitcoin is surely in an oversold condition.
What to know:
- Bitcoin's early rally Wednesday seems a faint memory as the price has returned to the week's lows.
- Precious metals continue to get bid, with silver rushing to yet another new record and gold closing in on an all-time high.
- One analyst cautioned against reading too much into the current bitcoin price action due to year-end positioning and tax considerations.
Top Stories
