Bitcoin (BTC) held support around $34,000 on Tuesday, but buyers took some profit just shy of the $35,000-$36,000 resistance zone. The cryptocurrency is up about 2% over the past 24 hours and remains in a tight trading range.
Buyers could defend support levels and attempt to break the 50-day moving average around $36,000. A breakout from the trading range would yield further upside towards $40,000 as momentum improves.
- The relative strength index (RSI) is approaching overbought levels, which could encourage short-term profit taking.
- Initial support is seen around the $33,000-$34,000 range as buyers were able to maintain a series of higher price lows over the past week.
- The month-long consolidation and declining volume suggest a volatile price move could occur as traders await confirmation of a decisive breakout.
- Although the intermediate-term trend is improving, upside remains limited beyond $40,000 given strong overhead resistance and trend weakness.
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