Bitcoin Struggles Below $40K; Upside Limited as Trend Weakens

bitcoin 6 7 2021 LearnCrypto Powered By Wyckoff SMI 2022

Bitcoin (BTC) failed to sustain moves above $39,000 last week, which was followed by a series of lower price highs. There is strong resistance around $37,600 which could limit upside this week.

At press time, the largest cryptocurrency was changing hands around $36,500.

While the long-term uptrend remains intact, slowing momentum and tighter trading ranges are keeping buyers on the sideline.

  • The relative strength index (RSI) is not yet overbought on the hourly chart, which could support a brief price bounce towards $37,000 resistance.
  • The daily RSI continues to hover around oversold levels. However, the weekly RSI is not yet oversold suggesting sellers could remain in control.
  • Bitcoin is down about 2% over the past seven days and has been stuck in a tight range between $34,000 and $39,000.
  • Volatility has declined from extreme levels in May, but remains elevated relative to April.
Screen Shot 2021 06 07 at 7.10.09 AM LearnCrypto Powered By Wyckoff SMI 2022
Hourly bitcoin chart shows short-term support and resistance levels with RSI.
Source: TradingView

By: Damanick Dantes

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