Bitcoin price has been trading in a tight range this week, which has provided some relief to market participants after a volatile start to the year. The cryptocurrency has been mostly flat for the past 24 hours and is up around 3% over the past week. At the time of writing, BTC is changing hands at $43,046.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price holding support above $42,000; resistance at $45,000 – $47,000
Bitcoin buyers are attempting to reverse a two-month downtrend. The cryptocurrency is down about 30% from its all-time high, near $69,000 in November, and now technical indicators suggest the sell-off is starting to stabilize.
BTC is trading around $43,000 at press time and is up about 3% over the past week. Support is seen around the $40,000 price level, limiting the near-term retracement. However, the upside momentum could be capped towards the $45,000-$47,000 resistance area by the end of the week.
The daily chart’s Relative Strength Index (RSI) is rising from oversold levels, similar to what occurred in late September, which preceded a price rally. This time, however, upside momentum is starting to wane on weekly and monthly charts, which lowers the chance of significant buying.
“Bitcoin has crept back to $43.1k, & Ethereum is back over $3,300. Altcoins are still spread all over the place. Average trader returns, according to our divergence model, indicate REN, GRT, COMP, AMP, and many others are still in low-risk spots, based on trader FUD”, Santiment stated.
Source: Santiment
The amount of ETH burned was equal to newly issued ETH over the past seven days, resulting in zero net issuance for the first time in the protocol’s history. The net issuance of ETH, calculated by block subsidy minus transaction fees burned, was zero over the last seven days. Essentially, there was no ETH inflation this past week, making it ‘harder’ money than bitcoin.
Elsewhere, the price of the Shiba-Inu-themed Dogecoin jumped over 17% in 24 hours early Friday, likely due to Elon Musk’s announcement that Tesla would accept DOGE as currency in its online store. DOGE is currently changing hands for roughly $0.19.
The overall cryptocurrency market cap stands at $2.059 trillion, and Bitcoin Dominance is 39.6%.
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