Coindesk Logo

Bitcoin Overbought at $40K Resistance; Support at $34K-$36K

Bitcoin Overbought at $40K Resistance; Support at $34K-$36K

Bitcoin Overbought at $40K Resistance; Support at $34K-$36K

Lower support is seen around $34,000-$36,000, which is the middle of a two-month range.

Lower support is seen around $34,000-$36,000, which is the middle of a two-month range.

Lower support is seen around $34,000-$36,000, which is the middle of a two-month range.

AccessTimeIconJul 29, 2021, 11:23 AM
Updated Mar 2, 2023, 10:26 PM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Bitcoin (BTC) completed a recovery from Monday's 10% pullback and is now re-testing the $40,000 resistance level. The cryptocurrency appears overbought, which could trigger some profit taking after a near 25% rally over the past week.

Lower support is seen around $34,000-$36,000, which is the middle of a two-month range.

  • The relative strength index (RSI) on the four-hour chart is declining from an extreme overbought reading on Monday. A lower high on the RSI indicates a bearish divergence, which could stall bitcoin’s short-term uptrend.
  • Initial support is seen at the 50-period moving average on the four-hour chart, currently at $36,000. Lower support is around $32,000-$34,000, which could stabilize a pullback.
  • The intermediate-term trend is improving with a significant loss of downside momentum over the past few weeks. Buyers could remain active at lower support levels, although a breakout above $40,000-$45,000 is needed to resume the long-term uptrend.  

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.