Bitcoin Gathers Upside Momentum, Faces Resistance Near $40K

Bitcoin (BTC) buyers remained active during Asian trading hours as they defended initial support of about $33,800. The next level of resistance is seen between $38,000 and $40,000, which is near the top of a monthlong range.

The $30,000 support level was retested over the weekend, marking a higher low from the June 22 shakeout of around $29,000. Price remains elevated and could break above the 100-period moving average on the four-hour chart.

Bitcoin was trading at about $35,000 at press time and is up 4% over the past 24 hours.

• Bitcoin is attempting to reverse a short-term downtrend, which could yield further upside, especially since the relative strength index (RSI) on the daily chart is not yet overbought.
• The corrective phase since May appears to be slowing as buyers return at support levels. A temporary relief rally could stabilize selling pressure until overbought signals appear on the charts.
• For now, bitcoin is stuck in a range as sellers have maintained a series of lower price highs since April.