Bitcoin price is stuck in a tight range, albeit with occasional price swings


Cryptocurrencies were mixed Friday, although selling pressure from earlier in the week appeared to be gaining steam. Bitcoin price traded lower after failing to break above $44,000 during the New York trading day. At the time of writing, BTC is changing hands at $42,219.

bitcoin-price-is-stuck-in-a-tight-range-albeit-with-occasional-price-swings

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price stalls below $48,000 resistance; support at $40,000 -$43,000

Bitcoin is stuck in a tight range, albeit with occasional price swings. The cryptocurrency is approaching a support zone between $40,000 and $43,000, which could stabilize the pullback.

Resistance at $48,000 and $50,000 have capped price rallies over the past four months, which means sellers are in control. Meanwhile, there has been a significant loss of downside momentum, suggesting that buyers could remain active at lower support levels.

The relative strength index (RSI) dipped below the 50 neutral levels on the weekly chart. That reflects a slight loss of upside momentum since BTC’s breakout was above $40,000 on March 28.

Still, the current pullback appears temporary, similar to what occurred in September of last year. This time, however, speculative assets such as stocks and cryptos are entering a seasonally strong period in April and May, which could attract short-term buyers.

Meanwhile, NEAR, the cryptocurrency powering layer one blockchain Near, rose by as much as 20% over the past 24 hours. WAVES declined by 10%, and XRP was down by 3% over the same period.

The dispersion in crypto returns suggests uncertainty among traders after a near 7% dip in BTC over the past week. Further, altcoins have fallen in and out of favor as investor sentiment shifts between bullish and bearish.

The overall cryptocurrency market cap stands at $1.956 trillion, and Bitcoin’s dominance rate is 41.1%.

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