“Expect a response from Buyers towards short-term oversold signals, upside is limited.”
There is a decline in the selling pressure of Bitcoin (BTC) after the price dip of last week. At around $40,000 cryptocurrency has found short-term support, whereas the upside seems to be limited at around $43,000-$45,000.
In the last 24 hours, there was a decline of 2% in the prices of BTC, even though not much movement in the price action in the past few days can be seen.
There is an increase in the relative strength index (RSI) from oversold levels, on the four-hour chart, which is expected to be preceded by a brief bounce in prices. On the daily chart, RSI is most oversold since Dec. 10.
The two-month-long downtrend of BTC has been weakened by the upside momentum, allowing the sellers to be active around the resistance level.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
Photo by – vjkombajn on Pixabay