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Bitcoin Returns Above $40K; Faces Resistance at $45K-$50K
Strong overhead resistance could limit price rallies into next week.
Updated Mar 2, 2023, 12:42 p.m. Published Aug 6, 2021, 11:29 a.m. 1 min read
Bitcoin (BTC) is testing resistance near $40,000 after several breakout attempts over the past three months. The short-squeeze rally lost some momentum this week, although downside appears limited around the $34,000 to $36,000 support zone.
The next level of resistance is seen at the 200-day moving average near $45,000. A successful breakout would yield an initial upside target towards $50,000-$55,000.
Bitcoin was trading around $40,600 at press time and is up 6% over the past 24 hours.
- The relative strength index (RSI) is declining from overbought levels, which could encourage some profit taking around resistance levels.
- Bitcoin’s intermediate term trend is improving after holding support above $30,000 over the past three months.
- A decisive move above the 200-day moving average would clear the downtrend since April, although strong overhead resistance could limit price rallies into next week.
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Heavy supply concentration and large options positioning continue to suppress volatility and keep bitcoin range-bound.
What to know:
- Bitcoin rebounded from its 128-day moving average near $74,500
- It remains below key onchain resistance levels around $77,000, including the true market mean and short-term holder cost basis.
- Ahead of the $6.6 billion Deribit options expiry on May 29, large open interest at the $75,000 put and $80,000 call is...
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