© Reuters
By Samuel Indyk
Investing.com – The price of was steady near $42,000 on Thursday morning as the world’s largest cryptocurrency remained within its recent range. Bitcoin has been trading in the $40,000-45,000 range since January 6, except for a brief dip below $40,000 on January 10.
The largest cryptocurrency is down around 4.5% in the past week, with its market capitalization just under $800 billion.
Weakness in US equities and the outlook for Fed policy continue to keep the price of bitcoin and other major cryptocurrencies low in early 2022. Bitcoin has traded at the same pace as other risky assets in recent weeks, and with the Fed intent on tightening policy sooner than expected, bitcoin has struggled to find bullish momentum.
Bitcoin remains around 39% below its all-time high reached in November last year.
Technical situation
On the downside, the psychological level of $40,000 remains the main support. Buying interest was seen when bitcoin broke below this level on January 10. A similar low footprint was seen in September when bitcoin dipped below $40,000.
On the upside, the $43,000-$45,000 area continues to act as resistance.
A break above this zone will open the door to the 50-day moving average ($46,770) which recently crossed the 200-day moving average ($48,670). When this happens it is often seen as a bearish indicator, however, there has been no major weakness in bitcoin since the moving average crossover on Friday last week.
For now, bitcoin remains in a range and it looks like only a breakout of the $40,000-$45,000 range will result in more volatile price action, as has become the norm in the cryptocurrency markets. .
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