Bitcoin (BTC) stabilized around $38,000 support on Wednesday, but upside appears limited towards $41,000. The choppy range over the past few days suggests indecision between buyers and sellers.
A breakout from the trading range would yield an upside target towards the next resistance level around $45,000. However, upside momentum has been weak, which means the corrective phase from May is not yet complete.
Bitcoin was trading around $39,200 at press time and is up 7% over the past seven days.
- The relative strength index (RSI) on the four-hour chart is neutral after signaling an overbought downturn on Monday.
- The short-term trend is improving as price remains above the 100-period moving average on the four-hour chart.
- Support around $37,000 and $34,000 could stabilize a potential pullback. However, there is strong resistance between $41,000 and $45,000.
- The weekly chart is not yet oversold, which suggests limited upside and an extended period of consolidation.