Bitcoin (BTC) is holding support at above $40,000, which could stabilize the pullback and encourage short-term buyers to return. But upside appears to be limited, given strong resistance at around $47,000-$50,000.
The cryptocurrency was trading at about $42,000 at press time and is down 2% over the past 24 hours.
- The relative strength index (RSI) on the daily chart is the most oversold since July 20, which preceded a nearly 60% short-squeeze rally from the $30,000 support level.
- On the weekly chart, however, the RSI is neutral, suggesting prices could consolidate for a few more days.
- For now, BTC found support at its 100-day moving average of around $40,000. If broken, lower support is seen at around $37,500, which is the middle of a four-month price range.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.