Share this article
BTC
$83,018.95
-
1.34%ETH
$1,787.72
-
1.70%USDT
$0.9999
+
0.03%XRP
$2.1292
-
0.54%BNB
$591.42
-
1.04%SOL
$119.17
-
3.43%USDC
$1.0003
+
0.03%DOGE
$0.1680
-
1.44%ADA
$0.6489
-
2.01%TRX
$0.2378
-
0.71%LEO
$9.0827
-
4.78%LINK
$12.66
-
2.86%TON
$3.2688
-
3.73%XLM
$0.2501
-
3.74%AVAX
$17.87
-
1.76%SHIB
$0.0₄1232
+
0.15%SUI
$2.2083
-
3.79%HBAR
$0.1612
-
2.69%LTC
$82.13
-
2.79%OM
$6.2546
-
0.03%Sign Up
- Back to menuPrices
- Back to menuResearch
- Back to menu
- Back to menu
- Back to menu
- Back to menuResearch
Bitcoin Overbought at $40K Resistance; Support at $34K-$36K
Lower support is seen around $34,000-$36,000, which is the middle of a two-month range.
Bitcoin (BTC) completed a recovery from Monday's 10% pullback and is now re-testing the $40,000 resistance level. The cryptocurrency appears overbought, which could trigger some profit taking after a near 25% rally over the past week.
STORY CONTINUES BELOW
Lower support is seen around $34,000-$36,000, which is the middle of a two-month range.
- The relative strength index (RSI) on the four-hour chart is declining from an extreme overbought reading on Monday. A lower high on the RSI indicates a bearish divergence, which could stall bitcoin’s short-term uptrend.
- Initial support is seen at the 50-period moving average on the four-hour chart, currently at $36,000. Lower support is around $32,000-$34,000, which could stabilize a pullback.
- The intermediate-term trend is improving with a significant loss of downside momentum over the past few weeks. Buyers could remain active at lower support levels, although a breakout above $40,000-$45,000 is needed to resume the long-term uptrend.
Damanick Dantes
Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.
