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Bitcoin Holds Short-Term Support, Faces Resistance at $40K
BTC held minor support along a series of lower price highs. Upside appears limited going into the weekend.
Updated Mar 6, 2023, 3:40 p.m. Published Jun 11, 2021, 11:23 a.m.
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Bitcoin (BTC) is stuck in a consolidation phase after a volatile May. A nearly 13% rise on Wednesday was short-lived as buyers took profits. There is strong resistance near $40,000 despite oversold readings on the daily chart.
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Bitcoin registered a series of lower price highs over the past two weeks, although buyers have defended support at around $34,000 and $30,000.
The cryptocurrency was trading at about $37,500 at press time.
- The relative strength index (RSI) on the daily chart is improving from an initial oversold reading on May 19, which suggests the downtrend from May is stabilizing.
- However, there is strong overhead resistance, which could limit price rallies beyond $40,000.
- The weekly chart is not yet oversold, although there are initial signs of downside exhaustion. That means buyers and sellers are at a stalemate until a decisive break above $40,000 or below $30,000 is confirmed.
- The longer-term trend is weakening following extreme overbought signals in March. For now, upside remains limited into the weekend given the intermediate-term downtrend.
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KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
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- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
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Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
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- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
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