Bitcoin Downtrend Persists; Support at $30K

Bitcoin (BTC) sellers were active over the weekend, which contributed to negative momentum. The cryptocurrency appears to be oversold on intraday charts, although a price bounce could be limited toward $40,000 resistance. Lower support is seen around $30,000, which could stabilize the sell-off.

BTC was trading at $37,700 at press time and is down 15% over the past week.

The downtrend since November 2021 remains intact, albeit within a long-term uptrend. That means price action has a tendency to rise exponentially following cycle lows. For now, indicators do not suggest BTC is at a cycle low.

Previous drawdowns suggest selling pressure could continue over the short-term.

Currently, BTC is 43% off its all-time high near $69,000 reached in November 2021, compared with a 50% drop during the first half of 2021, and a 70% decline during the March 2020 crash. The most extreme peak-to-trough decline was roughly 80% during the 2018 bear market.

In this cycle, buyers will need to maintain support around the $27,000-$30,000 support zone to maintain the broader trend.

The chart below shows previous sell-off extremes, created on Koyfin, a financial data provider.

Interactive chart showing bitcoin's price along with the percentage drawdown from the peak (lower chart). (Koyfin/CoinDesk)