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Bitcoin Approaches Support Zone at $37K-$40K
BTC is not yet oversold and is roughly two days away from a pause in selling pressure.
Updated May 11, 2023, 3:35 p.m. Published Apr 11, 2022, 6:19 p.m.
Bitcoin (BTC) is extending its pullback that began on March 28 after buyers failed to break above the $48,000 resistance level.
The cryptocurrency is not yet oversold, although lower support at $37,500 and $40,000 could stabilize the down move.
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BTC was trading around $40,500 at press time and is down 5% over the past 24 hours. Countertrend signals, however, are roughly two days away from an inversion (selling exhaustion), per the DeMARK indicators.
The relative strength index (RSI) on the daily chart is approaching oversold levels, which could pause the current price drop. Still, oversold readings could persist for a few weeks, similar to what occurred earlier this year.
On the weekly chart, momentum signals are still positive. That means BTC's recovery from January lows remains intact, so long as buyers can maintain support above $37,500.
Despite short-term price rises, further upside beyond $50,000 could be challenging given negative momentum signals on the monthly chart, similar to what occurred during the 2018 crypto bear market.
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When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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