Bitcoin (BTC) buyers are taking profits after a rally toward $42,000 over the weekend. The cryptocurrency appears overbought and could find support around $34,000, which is the midpoint of a two-month range.

The intermediate-term uptrend is improving after a near 30% rally from the July 20 low around $29,000. Buyers could remain active at lower support levels given the loss of downside momentum over the past month.

Bitcoin was trading around $39,500 at press time and is down 4% over the past 24 hours.


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 registered a series of lower highs, which suggests the short-term uptrend is weakening.

  • The RSI is not yet oversold and could encourage further profit taking towards initial support around $34,000.

  • Bitcoin returned below the 100-day moving average after overbought signals appeared for the first time since April, which preceded a sell-off.

  • The weekly chart is holding support and could signal a return of positive momentum this month.

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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