Bitcoin (BTC) held support around $34,000 on Tuesday, but buyers took some profit just shy of the $35,000-$36,000 resistance zone. The cryptocurrency is up about 2% over the past 24 hours and remains in a tight trading range.
Buyers could defend support levels and attempt to break the 50-day moving average around $36,000. A breakout from the trading range would yield further upside towards $40,000 as momentum improves.
- The relative strength index (RSI) is approaching overbought levels, which could encourage short-term profit taking.
- Initial support is seen around the $33,000-$34,000 range as buyers were able to maintain a series of higher price lows over the past week.
- The month-long consolidation and declining volume suggest a volatile price move could occur as traders await confirmation of a decisive breakout.
- Although the intermediate-term trend is improving, upside remains limited beyond $40,000 given strong overhead resistance and trend weakness.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.