Bitcoin price hovers around $43,000 as investors look for signs it hit a bottom point

By Selena On Jan 17, 2022

The cryptocurrency price drop continues. Bitcoin price spent most of its weekend almost where it started, hovering just over $43,000. That level was slightly better than at the start of the week but is well above the highs just two months ago. At the time of writing, BTC is changing hands at $42,853.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price has stopped its decline and is attempting a recovery along with select altcoins

The passing week has been bullish for Bitcoin as its rate has risen by 2.60%. However, from the technical point of view, bulls could not seize the initiative to come back to the mid-term bullish trend. The price is between the support at $39,573 and the resistance at $45,478.

Sideways trading is also confirmed by the low trading volume, which means that there are low chances to see sharp moves in the next week. In this case, the more likely scenario is the continued trend around $42,000-$44,000.

Trading was light as investors looked for signs that bitcoin’s downward spiral has reached an endpoint and that the largest cryptocurrency by market capitalization is ready to enter a new bull cycle. Ether (ETH) and most other altcoins followed a similar sluggish pattern.

Bitcoin daily price chart shows support/resistance with RSI on bottom | Source: TradingView

Buyers are attempting to reverse a two-month-long downtrend. The cryptocurrency declined by roughly 30% from an all-time high near $69,000 in November, and now technical indicators suggest the sell-off is starting to stabilize.

BTC was up about 3% over the past week, although the recent decline in trading volume suggests large price swings could occur. Support is seen around the $40,000 price level, limiting pullbacks over the short term. Still, the upside could be limited toward the $45,000-$47,000 resistance zone over the weekend.

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. However, this time, upside momentum is starting to wane on weekly and monthly charts, which lowers the chance of significant buying.

Could Bitcoin continue its recovery and pull select altcoins higher? Cause the overall cryptocurrency market cap stands at $2.062 trillion, and Bitcoin Dominance is 39.4%.

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