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Bitcoin Selling Intensifies; Support at $30K Could Stabilize Correction
There are initial signs of downside exhaustion, although upside appears limited.
Updated May 11, 2023, 6:34 p.m. Published Feb 24, 2022, 4:27 p.m.
Bitcoin (BTC) extended losses during the Asia trading day and broke below intraday support at $36,500. The cryptocurrency appears to be stabilizing, although stronger support is seen at $30,000.
BTC was trading around $36,000 at press time and is down 6% over the past 24 hours. For now, upside remains limited beyond the $38,000-$40,000 resistance zone.
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On the daily chart, downside exhaustion signals are starting to appear, similar to what occurred on Jan. 24, which preceded a 30% price jump. This time, however, the relative strength index (RSI) is not deeply oversold, which could delay a potential upswing in price.
Momentum signals remain negative on weekly and monthly charts. That means BTC is vulnerable to further declines. The next two weeks will be critical to determine if buyers have enough conviction to defend the $28,000-$30,000 support zone.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
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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