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Bitcoin Under Pressure, Lower Support at $30K-$35K

Momentum signals remain negative, indicating consistent selling pressure over the past month.

Updated May 11, 2023, 4:59 p.m. Published Feb 18, 2022, 7:26 p.m.
Bitcoin weekly chart shows support/resistance with RSI on bottom. (Damanick Dantes/CoinDesk, TradingView)
Bitcoin weekly chart shows support/resistance with RSI on bottom. (Damanick Dantes/CoinDesk, TradingView)

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.

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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.

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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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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch

Solana CME futures first-day activity compared to BTC and ETH debuts. (CME/K33 Research)

When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.

Ce qu'il:

  • 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.