Bitcoin price has been trading in a tight range this week, which has provided some relief to market participants after a volatile start to the year. The cryptocurrency has barely changed over the past 24 hours and is up around 3% in the past week. At the time of writing, BTC is changing hands at $43,046.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price is holding support above $42,000 resistance at $45,000 – $47,000
Bitcoin 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 is trading around $43,000 at press time and is up around 3% over the past week. Support is seen around the $40,000 price level, limiting the short-term retracement. However, the upside momentum can be capped at 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 started to wane on the weekly and monthly charts, which reduces the buying opportunity significantly.
“Bitcoin is back to $43.1k and Ethereum is back over $3,300. Altcoins are still ubiquitous. The average trader’s return, according to our divergence model, shows that REN, GRT, COMP, AMP and more remain within low risk points, based on the trader’s FUD”, Santiment speak.
The source: Santiment
The amount of ETH burned equals the number of new ETH released in the past seven days, resulting in a net release of zero for the first time in the protocol’s history. The net issuance of ETH, calculated as block subsidy minus transaction fees burned, is equal to the last seven days. Essentially, there was no ETH inflation in the last week, making it more ‘hard to earn’ than bitcoin.
Elsewhere, the price of Shiba-Inu-themed Dogecoin has surged more than 17% in the first 24 hours of Friday, likely due to Elon Musk’s announcement that Tesla will accept DOGE as currency in its online store. DOGE is currently changing hands for around $.19.
The overall crypto market cap is $2,059 trillion and Bitcoin dominance is 39.6%.
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