Bitcoin sell-off could stabilize around 42k support

CoinDesk Analysis Team CoinDesk

Sellers remained active on Wednesday as bitcoin (BTC) dropped below $50,000 after Tesla halted acceptance of payments for new vehicles in the currency.

The cryptocurrency was trading around $49,400 at press time and could find lower support around $42,000.

Long-term momentum continues to weaken during several months of consolidation. BTC remains under pressure after reaching the upper bound of a three-year price channel.

The relative strength index (RSI) on the four-hour chart is oversold similar to April 25 which preceded a price recovery.
However, the RSI is not yet oversold on the daily chart. This means bitcoin could trade lower towards $42,000 support.
Bitcoin returned below the 100-day moving average which created resistance around $53,600.
Over the short-term, higher volatility and frequent drawdowns could discourage buyers. For now, the long-term trend remains intact above $42,000.

Four-hour bitcoin chart shows support and resistance levels with RSI.

Source: TradingView

Author

CoinDesk Analysis Team

CoinDesk

CoinDesk is the media platform for the next generation of investors exploring how cryptocurrencies and digital assets are contributing to the evolution of the global financial system.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).

Sberbank issues Russia's first corporate loan backed by Bitcoin

Russia's largest bank Sberbank launched the country's first Bitcoin-backed corporate loan to miner Intelion Data. The pilot deal uses cryptocurrency as collateral through Sberbank's proprietary Rutoken custody solution.

Bitcoin recovers to $87,000 as retail optimism offsets steady ETF outflows

Bitcoin (BTC) trades above $88,000 at press time on Tuesday, following a rejection at $90,000 the previous day. Institutional support remains mixed amid steady outflow from US spot BTC Exchange Traded Funds (ETFs) and Strategy Inc.’s acquisition of 1,229 BTC last week.