Bitcoin Stuck Below $40K, Eyes Short-Term Oversold Bounce
Bitcoin (BTC) buyers continue to struggle below $40,000 resistance as the short-squeeze rally fades. The cryptocurrency was trading at around $38,000 at press time and is down 4% over the past week. Short-term oversold signals suggest the pullback could stabilize above $36,000 support.
The relative strength index (RSI) is rising from oversold levels on the hourly chart, which could encourage short-term buying.
Upside appears to be limited toward $40,000 resistance as bitcoin remains in a consolidation phase.
The daily RSI is declining from overbought levels with slowing momentum, although support could hold above $34,000 to $36,000.
