By Samuel Indyk
Investing.com – The price of Bitcoin was steady near $42,000 on Thursday morning with the world’s largest cryptocurrency remaining within its recent range. Bitcoin has traded in a $40,000-$45,000 range since January 6th, apart from one brief trip below $40,000 on 10th January.
The largest cryptocurrency is down around 4.5% in the latest week with its market cap just below $800 billion.
The weakness in US stocks and Fed policy outlook is continuing to keep the price of Bitcoin and other major cryptocurrencies subdued in the early part of 2022. Bitcoin has traded in lockstep with other risk assets in recent weeks and as the Fed intends to tighten policy faster than previously expected, Bitcoin has struggled for upside momentum.
Bitcoin remains around 39% below its all-time high reached in November last year.
Technical Picture
To the downside, the psychological $40,000 level remains major support. Buying interest was observed when Bitcoin dropped below that level on 10th January. A similar low print was seen in September when Bitcoin dropped below $40,000.
On the upside, the $43,000-$45,000 zone continues to act as resistance.
A break above there will open the door to the 50-day moving average ($46,770) which recently crossed below the 200-day moving average ($48,670). When this occurs, it often is seen as a bearish indicator, however, there has not been any major weakness in Bitcoin since the moving averages crossed on Friday last week.
For now, Bitcoin remains rangebound and it appears only a break out of the $40,000-$45,000 range will prompt more volatile price action as has become the norm in the cryptocurrency markets.