Bitcoin Rangebound Near $50K Resistance; Support at $40K
BTC is trading around the 200-day moving average and will need to break out of a short-term range to resume the uptrend.
Updated Mar 6, 2023 at 3:34 p.m. UTC
![Bitcoin daily chart](https://www.coindesk.com/resizer/AjvPogwWyg_8K4wqjyv8LB1aovo=/567x305/filters:quality(80):format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/E6RZA4I2SJHIXC5JXNXHHO4S7M.png)
Bitcoin (BTC) is stuck in a sideways range as the short-squeeze rally takes a breather. Buyers could start to take profits ahead of the $50,000 resistance level, although support around $40,000-$42,000 could stabilize a pullback.
The world’s largest cryptocurrency by market value was trading around $46,900 at press time and is roughly flat over the past week.
- The relative strength index (RSI) on the daily chart is declining from overbought levels, which typically precede price pullbacks. The RSI has a slight negative divergence with price as upside momentum wanes.
- Bitcoin is trading around the 200-day moving average and will need to break out of a short-term range to resume the uptrend.
- Support is seen around the top of the prior two-month consolidation phase between $40,000 and $42,000. A successful re-test of these levels could yield further upside towards $50,000 and $55,000.