Bitcoin price holds above $41,000, even after hawkish comments from the chair of the U.S. central bank
Bitcoin price started the week slowly in Asia, and some investors may be placing their bets on DeFi. Bitcoin’s pullbacks could be limited over the short term. At the time of writing, BTC is changing hands at $41,730.
BTC/USD 4-hour chart | Source: TradingView
Trading of Bitcoin price has been light
Bitcoin (BTC) stood roughly where it did 24 hours ago, a little over $41,000, after a brief dip below this threshold following hawkish monetary policy comments from U.S. central bank Chair Jerome Powell.
“As Bitcoin wavers around $41k, #Tether indicates big moves may be coming for crypto. Thursday (83k) and Saturday (74k) had the two largest days of 2022 in terms of addresses interacting on the network. Keep an eye on this diminishing stagnancy”, Santiment reported.
Source: Santiment
BTC is consolidating around the $41,000 price level amid declining trading volume. The cryptocurrency is roughly flat over the past 24 hours, and pullbacks could be limited toward a solid support base at $37,000.
Further, the relative strength index (RSI) on the four-hour chart is declining from overbought levels, reflecting a loss of upside momentum. On the daily chart, the RSI is holding above the 50 neutral mark, which means buyers could remain active at lower support levels. On the weekly chart, technical indicators are improving, similar to what occurred in August 2021, which preceded a 60% price rally. However, this time, there is negative momentum on the monthly chart, which typically precedes rangebound or negative price action. That means upside could be limited around the $46,000-$50,000 resistance zone.
Ether (ETH) changed hands at about $2,900, up over 2%. Other significant cryptos were mixed. Trading volume was light as investors took stock of fast-moving, global macroeconomic trends. Bitcoin peaked at over $42,000 last week, buoyed by China’s commitment to supporting its flailing real estate and technology sectors.
Read more:
- Things Are Looking Up On Higher Timeframes For Bitcoin Price Action
- Crypto Market Faces Massive Outflows As Traders Lose Trust In Exchanges