Bitcoin oversold at support, resistance at $47k
|Bitcoin (BTC) is holding support above $40,000, which could stabilize the pullback and encourage short-term buyers to return. However, upside appears to be limited given strong resistance around $47,000-$50,000.
The cryptocurrency was trading around $42,000 at press time and is down 2% over the past 24 hours.
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The relative strength index (RSI) is the most oversold since July 20, which preceded a near 60% short-squeeze rally from the $30,000 support level.
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On the weekly chart, however, the RSI is neutral, suggesting price could consolidate for a few more days.
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For now, BTC found support at the 100-day moving average, currently around $40,000. If broken, lower support is seen around $37,500, which is the middle of a four-month price range.
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