Bitcoin price continued to trade around $40,000 after flat performance over the past week
Bitcoin price dipped to a five-week low around $38,547 early Monday before bouncing back up above $40,000 later in the day. At the time of writing, BTC is changing hands at $40.831.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price briefly touched a five-week low around $38,547, then bounced and ended the trading day higher
All in all, though, the price action looked pretty tame – just another day spent in a now months-long range between about $36,000 and $48,000. As of press time, the largest cryptocurrency was changing hands for around $40,831.
“On a nice rebound day for crypto, trading volume has picked up significantly after a particularly dormant weekend as prices quickly jumped back to its pre-Thursday dip prices. Congrats to those who were bold enough to buy the dip this past weekend”, Santiment reported.
Bitcoin appears to be stabilizing after a 15% decline over the past two weeks. So far, the cryptocurrency is holding support above $37,000, similar to what occurred in early March. The four-hour chart’s Relative Strength Index (RSI) is rising from oversold levels despite the recent downtrend in price. That could signal bullish activity toward the $45,000 resistance zone.
Still, BTC has remained in a tight trading range around the $40,000 price level over the past few months. A positive momentum signal on the daily chart is needed to signal a price recovery outside of the current trading range. On the weekly chart, BTC is holding long-term support above its 100-week moving average at $35,700. Positive momentum readings remain intact over the intermediate-term, albeit with bearish signals on the monthly chart.
Ether briefly dipped below $3,000, reaching a low of $2,880 earlier before recovering over $3,000. Buyers are starting to return, which typically occurs during the second half of the month – a pattern observed by some analysts this year. Further, historical data suggests stocks and cryptos are entering a seasonally strong period in April and May, which could encourage short-term price rises.
Still, geopolitical and regulatory risks remain. For example, fighting between Russia and Ukraine intensified over the past weekend, which kept some investors on edge. And in crypto markets, new evidence of money laundering and hacks could trouble policymakers around the world.
For now, some altcoins outperformed bitcoin on Monday, indicating a greater appetite for risk among traders. Terra (LUNA) and Monero (XMR) were up by 8% over the past 24 hours, compared with a 2% rise in BTC over the same period.
The overall cryptocurrency market cap stands at $1.894 trillion, and Bitcoin’s dominance rate is 41%.
- Bitcoin Was Trading Just Under The $40,000 Threshold Where It Started The Weekend
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