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Bitcoin Price Jump Faces Resistance at $40K-$46K; Support at $35K

For now, selling pressure has waned, which supports a short-term price bounce.

Updated May 11, 2023, 6:16 p.m. Published Feb 25, 2022, 7:20 p.m.
Bitcoin daily chart shows support/resistance, with RSI on bottom. (Damanick Dantes/CoinDesk, TradingView)
Bitcoin daily chart shows support/resistance, with RSI on bottom. (Damanick Dantes/CoinDesk, TradingView)

Bitcoin (BTC) experienced a sharp reversal on Thursday, and extended gains into Friday. For now, selling pressure has faded, which means buyers could remain active between the $30,000 and $46,000 range.

BTC returned above $38,000 and is up 6% over the past 24 hours. Still, the cryptocurrency is down 2% over the past week, which means the recent bounce has not shifted the short-term downtrend.

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Thursday’s price action triggered initial downside exhaustion signals, per the DeMARK indicators, similar to what occurred on Jan. 24, which preceded a 30% upswing in price. Still, in bear markets, counter-trend signals can be brief or invalid depending on the status of long-term momentum readings. Currently, momentum remains negative on the weekly and monthly charts.

Immediate resistance is seen at $40,000, which could stall the current price bounce. There is stronger resistance at $46,700, which capped upside moves earlier this month.

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  • Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions. 
  • Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.

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