Share this article
Bitcoin Sell-Off Could Stabilize Around $42K Support
BTC remains under pressure and could find lower support near $42K as long-term momentum wanes.
Updated Mar 6, 2023, 3:34 p.m. Published May 13, 2021, 11:29 a.m.
Make us preferred on Google
Sellers remained active on Wednesday as bitcoin (BTC) dropped below $50,000 after Tesla halted acceptance of payments for new vehicles in the currency.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The cryptocurrency was trading around $49,400 at press time and could find lower support around $42,000.
Long-term momentum continues to weaken during several months of consolidation. BTC remains under pressure after reaching the upper bound of a three-year price channel.
- The relative strength index (RSI) on the four-hour chart is oversold similar to April 25 which preceded a price recovery.
- However, the RSI is not yet oversold on the daily chart. This means bitcoin could trade lower towards $42,000 support.
- Bitcoin returned below the 100-day moving average which created resistance around $53,600.
- Over the short term, higher volatility and frequent drawdowns could discourage buyers. For now, the long-term trend remains intact above $42,000.
