Bitcoin (BTC) sellers returned during Asia hours given strong resistance near the $40,000 level. The cryptocurrency was trading around $38,000 at press time and is down 5% over the past week. Initial support is seen around $34,000 and $36,000, which could stabilize the pullback.

Bitcoin

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

Source: TradingView

  • The relative strength index (RSI) on the four-hour chart made a series of lower highs as upside momentum slowed. Short-term buyers responded to oversold conditions on Wednesday but failed to push past $40,000 resistance.

  • Initial support is seen at $36,000, which is near the 100-period moving average on the four-hour chart. Buyers will likely defend support above $30,000 as bitcoin (BTC, -3.31%) remains in a consolidation phase.

  • Bitcoin’s intermediate-term downtrend remains in effect despite the near 30% short-squeeze rally over the past two weeks.

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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