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Bitcoin Rises from Oversold Levels; Faces Resistance Near $40K-$45K

Bitcoin Rises from Oversold Levels; Faces Resistance Near $40K-$45K

Bitcoin Rises from Oversold Levels; Faces Resistance Near $40K-$45K

BTC could see limited upside as the corrective phase weakens and buyers return.

BTC could see limited upside as the corrective phase weakens and buyers return.

BTC could see limited upside as the corrective phase weakens and buyers return.

AccessTimeIconMay 26, 2021, 11:30 AM
Updated Mar 2, 2023, 10:40 PM

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Bitcoin (BTC) made a brief move above $40,000 resistance on Tuesday but buyers were unable to sustain upside momentum. The cryptocurrency was trading around $39,700 at the time of writing and could see another attempt towards $40,000 to $45,000.

The recovery from the May 19 low is improving, which could stabilize selling pressure over the short term.

  • The relative strength index (RSI) is not yet overbought on the four-hour chart which suggests further buying strength, albeit briefly.
  • Bitcoin is now above the 50-period volume weighted moving average on the four-hour chart but faces resistance near the 100-period moving average – a more reliable gauge of the intraday downtrend.
  • Bitcoin is up about 8% over the past seven days after a successful re-test around $30,000 support on Sunday.
  • The daily price chart is improving, although a decisive break above $40,000 is needed to maintain a bullish posture. For now, price recoveries appear counter-trend and limited to nearby resistance levels.

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