Bitcoin struggles below $40k, upside limited as trend weakens

Bitcoin (BTC) failed to sustain moves above $39,000 last week which was followed by a series of lower price highs. There is strong resistance around $37,600 which could limit upside this week.

At press time, the largest cryptocurrency was changing hands around $36,500.

While the long-term uptrend remains intact, slowing momentum and tighter trading ranges are keeping buyers on the sideline.

• The relative strength index (RSI) is not yet overbought on the hourly chart which could support a brief price bounce towards $37,000 resistance.

• The daily RSI continues to hover around oversold levels. However, the weekly RSI is not yet oversold which suggests sellers could remain in control.

• Bitcoin is down about 2% over the past seven days and has been stuck in a tight range between $34,000 and $39,000.

• Volatility has declined from extreme levels in May, but remains elevated relative to April.

Hourly bitcoin chart shows short-term support and resistance levels with RSI.
Source: TradingView