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Bitcoin Rises From Oversold Levels, Faces Resistance Near $45K
Short-term buyers could remain active into the Asia trading day.
Updated May 11, 2023, 3:40 p.m. Published Jan 11, 2022, 8:01 p.m.
Bitcoin (BTC) is trading above the $40,000 support level and is up about 3% over the past 24 hours. Buyers are starting to return to the market, although upside appears to be limited to the $45,000 resistance level, which is also near the 200-day moving average.
On intraday charts, upside momentum is improving, which suggests buyers could remain active into the Asia trading day.
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BTC is the most oversold since Dec. 10, according to the relative strength index (RSI) on the daily chart. Typically, oversold readings precede price recoveries, similar to what occurred in late September. This time, however, price reaction to the RSI and other indicators has been delayed.
Still, on the weekly chart, the RSI is not yet oversold, which decreases the chance of significant buying pressure.
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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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