Bitcoin Approaching $40K Resistance Zone; Support at $37K
Bitcoin (BTC) is recovering after multiple setbacks from the $40,000 resistance zone. Technical indicators are mostly neutral and trading volume is low, suggesting a breakout or breakdown is likely this week.
BTC was trading around $39,300 at press time and is roughly flat over the past week.
So far, buyers have maintained a strong support base around $37,000, which could limit pullbacks over the short term. The significant loss of downside momentum on the weekly chart could also encourage buying activity, especially if a breakout above $40,000 occurs.
On the monthly chart, however, momentum signals are negative, which means upside could be limited toward the $46,700 resistance level.
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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.
