Bitcoin Under Pressure, Lower Support at $30K-$35K
Bitcoin (BTC) remains in its short-term downtrend begun in November, currently off 40% from its all-time high near $69,000. The cryptocurrency was testing initial support at $40,000 at press time, although stronger support is seen at $30,000, which was roughly the bottom of 2021's selloff.
Momentum signals remain negative, indicating consistent selling pressure over the past month. Further, BTC was unable to break above its 40-week moving average at $45,724, which presents a bearish bias.
Still, the relative strength index (RSI) on the weekly chart is rising from its most oversold level since March 2020. That could keep short-term buyers active so long as the $30,000 support level holds.
If the $28,000-$30,000 range is broken, prices could experience additional downside, similar to the 80% peak-to-trough decline during the 2018 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.
