For now, selling pressure has waned, which supports a short-term price bounce.
Bitcoin (BTC) experienced a sharp reversal on Thursday, and extended gains into Friday. For now, selling pressure has faded, which means buyers could remain active between the $30,000 and $46,000 range.
BTC returned above $38,000 and is up 6% over the past 24 hours. Still, the cryptocurrency is down 2% over the past week, which means the recent bounce has not shifted the short-term downtrend.
Thursday’s price action triggered initial downside exhaustion signals, per the DeMARK indicators, similar to what occurred on Jan. 24, which preceded a 30% upswing in price. Still, in bear markets, counter-trend signals can be brief or invalid depending on the status of long-term momentum readings. Currently, momentum remains negative on the weekly and monthly charts.
Immediate resistance is seen at $40,000, which could stall the current price bounce. There is stronger resistance at $46,700, which capped upside moves earlier this month.