Bitcoin Upside Stalls; Lower Support at $38K-$40K

10 August 2021

Bitcoin (BTC) is roughly flat over the past 24 hours as the rally near $45,000 appears exhausted. Short-term overbought signals could encourage profit-taking, although buyers will likely return around the $38,000 to $40,000 support zone.

Bitcoin is up about 20% over the past week, compared to a 25% rise in ether (ETH), the world’s second-largest cryptocurrency by market value.

Bitcoin four-hour price chart shows short-term support and resistance levels with RSI.
Source: TradingView
  • The relative strength index (RSI) on the four-hour chart registered lower highs and is declining from overbought territory. Typically, short-term overbought signals precede price declines of about 5% to 10%.
  • Initial support is seen at the $40,000 breakout level, which resolved a two-month consolidation to the upside.
  • Bitcoin will need to hold above the 200-day moving average, currently around $45,000, to confirm a reversal of the intermediate-term downtrend since April.
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