The sell-off in bitcoin (BTC) has been stabilizing around $30,000 support since Monday, which could attract short-term buyers. Upside appears limited near the $36,000 resistance level given the near three-month downtrend.
Bitcoin was trading around $31,700 at press time and is down about 22% over the past seven days. Sellers remain in control, which could cap upside moves this week.
- The relative strength index (RSI) registered an oversold reading on May 19. Since then, buyers have defended support around $30,000.
- Upside momentum is weak, evidenced by several weeks of consolidation below $41,000 resistance.
- The RSI on the weekly chart is not yet oversold, meaning sellers have not yet capitulated.
- Lower support is seen around $27,000, which is a 61% retracement of the March 2020 low.