The cryptocurrency price drop continues. Bitcoin price spent most of the weekend almost from the start, hovering just over $43,000. That level was slightly better than at the start of the week but much higher than the high 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 falling and is trying to recover along with selected altcoins
The past week has been bullish for Bitcoin as its rate has increased by 2.60%. However, in technical term, the bulls are unable to seize the initiative to return to the medium-term uptrend. The price is located between the $39.573 support and the $45.478 resistance.
The sideways trading is also confirmed by low trading volume, which means it is less likely to see sharp fluctuations in the coming week. In this case, the more likely scenario is that the trend continues around $42,000-$44,000.
Trade lightly as investors look for signs that bitcoin’s downward spiral has come to an end and the largest cryptocurrency by market capitalization is poised to enter a new bull cycle. Ether (ETH) and most other altcoins follow a similar sluggish pattern.
![bitcoin-price-hovers-about 43000-when-investors-look-for-signs-it-hits-bottom[1]](https://tintucbitcoin.com/wp-content/uploads/2022/01/1642388046_326_Gia-bitcoin-dao-dong-quanh-muc-43000-USD-khi-cac.png "Bitcoin price hovers around $43,000 as investors look for signs it's bottoming out at 4")
Bitcoin daily price chart showing support/resistance with RSI below | Source: TradingView
Buyers are attempting to reverse a two-month downtrend. The cryptocurrency is down about 30% from its all-time high near $69,000 in November and now technical indicators suggest the sell-off is starting to stabilize.
BTC has rallied around 3% over the past week, although the recent drop in trading volume suggests a major price move is possible. Support is seen around the $40,000 price level, limiting the near-term retracement. However, the upside momentum could be capped towards the $45,000-$47,000 resistance area by the end of the week.
The relative strength index (RSI) of the daily chart is rising from oversold levels, similar to what happened in late September, before a bull run. This time, however, the bullish momentum is starting to wane on the weekly and monthly charts, which reduces buying opportunities significantly.
Can Bitcoin continue to recover and pull selected altcoins higher? As the overall crypto market cap is $2,062 trillion and Bitcoin Dominance is 39.4%.
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