Bitcoin price went on a roller coaster ride but also rose above $41,000, pared earlier losses

By Selena On Mar 17, 2022

Bitcoin was well into the green over the past 24 hours, although not before experiencing a roller-coaster ride of steep ascents and dips spurred by news events, including economic fallout from Russia’s invasion of Ukraine and the widely expected decision of the U.S. central bank to raise interest rates. At the time of writing, Bitcoin price is changing hands at $40,991.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price rises on a day of big price swings

BTC had soared past the psychologically important threshold of $40,000 early Wednesday morning (UTC) and then climbed past $41,000 over a roughly 90-minute period. The source of the quick spike remained unclear. However, some market observers believe it was tied to China’s pledge to support its real estate and tech industries, a move that calmed investors who have been abandoning stocks in droves after a regulatory crackdown and recent slowdown in the country’s storied economic growth.

“Bitcoin’s prices revisited above $40k over the past day but have just fallen below this threshold. Crypto prices are still mostly down over the past week; however, there has been a significant social volume rise, which is a promising sign”, Santiment stated.

Source: Santiment

After dropping under $40,000 on two occasions during Asian and U.S. trading hours, bitcoin was changing hands again above $41,000, up about 4%. The second-largest crypto by market cap, Ether was trading at nearly $2,800, a roughly 6% gain. Most other significant altcoins had gained ground over the past 24 hours.

Bitcoin pared earlier losses and returned above $40,000 toward the end of the New York trading day. The cryptocurrency experienced wild price swings over the past few days, which typically occurs during times of low trading volume. For now, support around $37,000-$40,000 remains intact, although resistance toward $45,000 could stall the upswing in price.

The relative strength index (RSI) on the daily chart continues to rise from an oversold reading on Jan. 21. Still, price jumps have been capped at resistance over the past two months, indicating persistent selling pressure. On a positive note, BTC could see additional price gains if the daily RSI remains above 50, which could signal the end of the four-month long downtrend.

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