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Bitcoin Downtrend Stabilizes, Resistance at $40K-$43K
Expect choppy price action within the current trading range.
Updated May 11, 2023, 3:52 p.m. Published May 4, 2022, 5:20 p.m.
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Bitcoin (BTC) is attempting to reverse a short-term downtrend on intraday charts, albeit within a three-month trading range. Choppy price action could occur as buyers try to defend support at $37,500 ahead of sell orders near the $40,000-$43,000 resistance zone.
BTC was trading at around $39,000 at press time and is up 2% over the past 24 hours. The cryptocurrency is roughly flat over the past week, reflecting uncertainty among traders.
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The relative strength index (RSI) on the daily chart is hovering near oversold levels, which could keep short-term buyers active, especially if momentum signals improve.
Still, upside appears to be limited despite the potential for intraday price swings. For example, there has been a loss of upside momentum on the weekly chart, similar to what occurred last November, which preceded a price drop.
This time, however, the weekly chart isn't overbought. That means BTC's current price range could persist until a decisive breakout above $46,000 or breakdown below $30,000 occurs.
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Forget $80k: Michael Terpin warns bitcoin could revisit the $40,000s before a real recovery
Terpin argued that bitcoin’s post-halving bubble followed its typical arc and says history suggests the market may still face another wave of pain.
What to know:
- Michael Terpin says the bull market peak came in the fourth quarter after the halving, in line with prior cycles.
- While dismissing $80,000 and $60,000 bottom calls as premature, he sees the potential for bitcoin to revisit the $50,000s or even $40,000s in a fragile market.
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