Bitcoin struggles at resistance, lower support near $34k

Bitcoin (BTC) declined from the $40,000 resistance level during Asia hours. The short-term uptrend appears exhausted, although lower support near $34,000 could stabilize the pullback into the weekend.

The intermediate-term downtrend is in effect, defined by lower price highs since April. Buyers have consistently taken profits at resistance levels, although there has been a significant loss of downside momentum since the May low around $30,000.

Bitcoin was trading around $38,800 at press time and is down 3% over the past 24 hours.

Bitcoin daily price chart shows support and resistance levels with RSI.

Source: TradingView

• The relative strength index (RSI) on the daily chart is the most overbought since April, which could keep short-term sellers active towards lower support levels.

• There is strong resistance between $40,000 and $42,000, which is near the 100-day moving average.

• The 50-day moving average is sloping upwards near $34,000 support, an indication that buyers are responding to improving momentum.