Bitcoin Oversold at Support, Resistance at $47K

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.

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Damanick Dantes

Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

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