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.

• 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.