Bitcoin Rises from Oversold Levels; Faces Resistance Near $40K-$45K

Bitcoin Rises from Oversold Levels; Faces Resistance Near $40K-$45K

Bitcoin (BTC) made a brief move above $40,000 resistance on Tuesday but buyers were unable to sustain upside momentum. The cryptocurrency was trading around $39,700 at the time of writing and could see another attempt towards $40,000 to $45,000.

The recovery from the May 19 low is improving, which could stabilize selling pressure over the short term.

  • The relative strength index (RSI) is not yet overbought on the four-hour chart which suggests further buying strength, albeit briefly.
  • Bitcoin is now above the 50-period volume weighted moving average on the four-hour chart but faces resistance near the 100-period moving average – a more reliable gauge of the intraday downtrend.
  • Bitcoin is up about 8% over the past seven days after a successful re-test around $30,000 support on Sunday.
  • The daily price chart is improving, although a decisive break above $40,000 is needed to maintain a bullish posture. For now, price recoveries appear counter-trend and limited to nearby resistance levels.
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