Bitcoin Oversold Bounce Fades, Support at $34K-$36K

Initial support around $34K could stabilize the pullback.

Aug 5, 2021 at 11:24 a.m. UTC
Updated Sep 14, 2021 at 1:35 p.m. UTC

Bitcoin (BTC) sellers returned during Asian trading hours given the strong resistance near the $40,000 level. The cryptocurrency was trading at around $38,000 at press time and is down 5% over the past week. Initial support is seen at around $34,000 and $36,000, which could stabilize the pullback.

  • The relative strength index (RSI) on the four-hour chart made a series of lower highs as upside momentum slowed. Short-term buyers responded to oversold conditions on Wednesday but failed to push past $40,000 resistance.
  • Initial support is seen at $36,000, which is near the 100-period moving average on the four-hour chart. Buyers will likely defend support above $30,000 as bitcoin remains in a consolidation phase.
  • Bitcoin’s intermediate-term downtrend remains in effect despite the near 30% short-squeeze rally over the past two weeks.

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