Bitcoin [BTC] was not able to hold its price over $40k resistance earlier today on Thursday as the broader uptrend weakens. The cryptocurrency was trading at a price near $37k at the reporting time and the upside appears limited into the weekend.
A bearish trend reversal is on watch after months of slowing momentum, consolidation, and a downside break below $50k and $40k. Bitcoin is down about 37% month so far and has experienced a series of sharp drawdowns almost like 2017 which preceded a market.
The RSI on the daily chart has been oversold over the past week as the price held support around $30k. However, the RSI isn’t yet oversold on the weekly chart which suggests price upside should remain limited to around $40k for some time.
Bitcoin is below the 100-day and 200-day moving averages. this means the corrective phase that began earlier this month, still remains in effect.
On intraday charts, bitcoin did not hold support. Additionally, a downside towards $33k could encourage short-term buyers and stabilize the present decline.
Despite signs of a broader trend reversal, there are still short-term opportunities for active traders. “BTC is often very volatile, especially compared to assets in traditional markets,” outlined Justin Chuh, senior trader at Wave Financial.
“No one is borrowing to short spot BTC, we still have an upward sloping forward curve, and downside protection remains relatively light,” explained Chuh, who added that support will be got to hold over $30k, or otherwise bitcoin would be down on the year.