Bitcoin (BTC) held support at $31,000 on Tuesday and now faces resistance near $36,000. The cryptocurrency was trading around $34,500 at press time.
The sell-off over the past week is now stabilizing as buyers respond to oversold conditions. However, upside appears limited as bitcoin consolidates within a tight trading range.
- The relative strength index (RSI) on the four-hour chart registered an oversold signal on Tuesday which preceded a 4% price rise.
- Bitcoin is attempting to break above a series of lower price highs over the past week. And since the RSI is not yet overbought, buyers could remain active towards $36,000.
- Resistance is seen at the 100-period moving average on the four-hour chart. The slope of the moving average is flattening which suggests the downtrend from May is stabilizing.