Bitcoin price spent much of its weekend in the doldrums. At the time of writing, BTC is changing hands at $42,091.
BTC/USD 4-hour chart | Source: TradingView
The current Bitcoin price pullback appears to be temporary ahead of seasonal strength
The largest cryptocurrency by market capitalization ignored a brief Sunday surge to settle below the $42,500 level. It ended Friday amid growing economic uncertainty tied to Russia’s unprovoked invasion of Ukraine and looming interest rate hikes by the U.S. central bank. The crypto had started the week trading near $47,000 after a late March jump, fueled by hopefulness about a sooner-than-later end to the Ukraine conflict.
Bitcoin was recently trading at about $42,300, down slightly over the past 24 hours. Ether’s second-largest crypto by market cap followed a similar weekend pattern and was also off a fraction at about $3,200. Other significant cryptos were mixed. AXS and Terra’s luna tokens had recently fallen about 1.5% and 2%, respectively. But popular meme token DOGE was up about 5%. Trading was light.
“As Ethereum sits just above $3,200, the ratio between ETH’s top 10 non-exchange and top 10 exchange addresses has grown to its largest gap. This climb continues pointing to a greater proportion being kept away from exchange sell-off risk”, Santiment reported.
Source: Santiment
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 to be 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.
Read more:
- With Bitcoin Price Back Under $45,000, Here’s What You Need To Know About Other Traders Panic Selling
- Bitcoin Price Headed Toward $42,000 After Bulls Failed To Spark A Late-Week Turnaround