Bitcoin holds $30k support after volatile shakeout, resistance at $36k
|Bitcoin (BTC) returned above the $30,000 level on Tuesday after a volatile trading session. Buyers quickly stepped in as oversold conditions appeared on intraday charts. The next level of resistance is seen around $36,000 which could limit further upside.
The world’s largest cryptocurrency was trading around $34,000 at press time and is up 9% over the past 24-hours.
Bitcoin four-hour chart shows support and resistance levels with RSI.
Source: TradingView
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The near 10% price drop on Tuesday was typical of a shakeout, which signals a period of market turmoil when sellers capitulate.
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Bitcoin’s two-month downtrend appears exhausted after the relative strength index (RSI) on the daily chart registered a higher low. This means buyers could remain active towards upper resistance levels.
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The RSI on the four-hour chart is not yet overbought, although bitcoin is still below the 100-period moving average, suggesting resistance could be found at $36,000.
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Stronger resistance is seen at $40,000 which is near the upper bound of a month-long range.
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