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.

  • 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.

  • On the weekly chart, however, the RSI is neutral, suggesting price could consolidate for a few more days.

  • 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.

All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

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