Bitcoin Stuck Below $40K; Eyes Short-Term Oversold Bounce

Bitcoin Stuck Below $40K; Eyes Short-Term Oversold Bounce

Bitcoin (BTC) buyers continue to struggle below $40,000 resistance as the short-squeeze rally fades. The cryptocurrency was trading around $38,000 at press time and is down 4% over the past week. Short-term oversold signals suggest the pullback could stabilize above $36,000 support.

  • The relative strength index (RSI) is rising from oversold levels on the hourly chart, which could encourage short-term buying.
  • Upside appears limited towards $40,000 resistance as bitcoin remains in a consolidation phase.
  • The daily RSI is declining from overbought levels with slowing momentum, although support could hold above $34,000 to $36,000.
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