Bitcoin rallies from oversold levels, faces resistance at $40k
|Bitcoin (BTC) broke above initial resistance at $36,000 after a near 13% rise on Wednesday. The next resistance level is seen at $40,000, which capped upside moves over the past two weeks.
The short-term trend is improving after a series of lower price highs since May. The weekly chart is showing initial signs of downside exhaustion, which could stabilize the month-long corrective phase.
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Bitcoin returned above the 100-period moving average on the four-hour chart and is approaching short-term overbought levels.
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Buyers could remain active towards $40,000 which is also near the 200-day moving average. The cryptocurrency was trading around $38,000 at press time.
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If a pullback occurs, bitcoin should find initial support around $34,000. Lower support around $30,000 was tested multiple times over the past two weeks as buyers return.
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Bitcoin will need to break free of the short-term consolidation phase to maintain the bullish uptrend. For now, recoveries appear limited given strong overhead resistance.
Bitcoin four-hour chart shows short-term support and resistance levels with RSI.
Source: TradingView
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