Bitcoin Drops Below $43K; Support at $35K-$40K
Bitcoin (BTC) sellers were active after buyers failed to sustain a break above $45,0000 this week. The cryptocurrency is down 4% over the past 24 hours, although initial support at $40,000 could stabilize the pullback.
The relative strength index (RSI) on the daily chart approached oversold territory on Wednesday, which preceded the recent downturn in price. On the weekly chart, however, the RSI is rising from oversold levels similar to what occurred in March 2020, which could keep buyers active over the short term.
Momentum indicators improved on the weekly chart after BTC rose 4% over the past seven days. That suggests a neutral outlook so long as support holds above $35,000-$40,000 over the weekend.
Still, the monthly chart appears bearish similar to July 2018, which was the middle of a crypto bear market.
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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.
