Bitcoin approaching short-term support at $34k-$36k

Bitcoin (BTC) sellers remained active during Asia hours as the cryptocurrency slipped further below $40,000 resistance. The next level of support is seen around $34,000-$36,000, which could stabilize the pullback.

Bitcoin was trading around $38,000 at press time and is down 2% over the past 24 hours. The short-term uptrend is weakening, although buyers could return for a brief bounce at support.

Bitcoin four-hour price chart shows short-term support and resistance levels with RSI.

Source: TradingView

• The relative strength index (RSI) is approaching oversold levels on the four-hour chart, which could encourage short-term buying.

• Bitcoin broke below a series of higher price lows from the July 19 short-squeeze around $30,000. This suggests buyers are in profit taking mode given recent overbought signals on the daily chart.

• The weekly chart is not yet oversold, although downside momentum has slowed considerably over the past month.