The recovery phase is still going strong but within a large trading range.
Bitcoin (BTC) has risen above $40,000, the midpoint of its three-month price bracket. However, the cryptocurrency faces significant resistance at $43,500, which could halt the current price rise.
BTC was trading around $41,200 at press time, up 5% in the previous 24 hours. On premarket charts, the relative strength index (RSI) is approaching overbought levels, similar to what happened in late March, which prompted a price retracement. On the daily chart, however, the RSI is neutral, implying that buyers may continue to be active at support.
For the time being, BTC is holding support above $37,500, a critical milestone that has kept the rebound on track. Furthermore, since Jan. 24, a succession of higher price lows has shown a reduction in selling pressure, but with price swings of 20%.
The weekly chart’s momentum signals are still bullish, pointing to more upside toward the $46,710 resistance level in the intermediate term.