Bitcoin Declines from $40K Resistance; Support at $34K – CoinDesk – CoinDesk

Bitcoin Declines From $40K Resistance; Support at $34K

Bitcoin (BTC) had a sharp 10% pullback after approaching the $40,000 resistance level on Monday. The cryptocurrency is holding initial support above $36,000 at press time and is up about 25% over the past week.

Lower support is seen around $34,000 which could stabilize the current pullback.

Bitcoin four-hour price chart shows short-term support and resistance levels with RSI.
Source: TradingView
  • The relative strength index (RSI) on the four-hour chart reached extreme overbought levels over the weekend as bitcoin rallied.  Overbought conditions typically precede price declines as buyers take profits.
  • The RSI on the daily chart is approaching overbought levels, which could limit bitcoin’s upside beyond $40,000 resistance.
  • Although the intermediate-term downtrend is improving, bitcoin remains in a consolidation phase between $30,000 and $40,000, which suggests buyers and sellers are in a stalemate despite occasional rallies and selloffs.