Bitcoin recovering, faces short-term resistance near $46k

Bitcoin (BTC) is recovering above its $40,000-$42,000 support zone after oversold signals appeared on the charts. Initial resistance is seen at around $46,000, which could limit further upside short term.

BTC was trading at around $43,700 at press time and is up 4% over the past 24 hours.

• The relative strength index (RSI) on the four-hour chart is rising from oversold levels that appeared earlier this week. The RSI is not yet overbought, which could keep buyers active, albeit limited toward $46,000 resistance.

• On the daily chart, however, the RSI is approaching neutral levels, which suggests further consolidation is needed to recapture upside momentum.

• Resistance remains strong toward $50,000 as bitcoin registered a series of lower price highs over the past two weeks.