Bitcoin Drifts Lower, Stuck Between $40K Support and $45K Resistance

BTC appears oversold into the Asian trading day, but upside remains limited.

Jan 18, 2022, 7:53 PM

Updated May 11, 2023, 3:39 PM

Bitcoin four-hour price chart shows support/resistance with RSI on bottom (Damanick Dantes/CoinDesk, TradingView)

Bitcoin (BTC) has traded in a sideways range over the past week, although buyers continued to hold support at around $40,000. The next level of resistance is between $43,000 and $45,000, which could limit short-term price gains.

BTC is roughly flat over the past 24 hours, as most technical indicators remain neutral heading into the Asian trading day.

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The relative strength index (RSI) on the four-hour chart is the most oversold since Jan. 7, which preceded a 10% price bounce. In a downtrend, however, price reaction to oversold readings could be delayed by a few days.

For now, sellers remain in control as long-term momentum signals weaken.

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Damanick Dantes

Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

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