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

7 June 2021

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.
Hourly bitcoin chart shows short-term support and resistance levels with RSI.
Source: TradingView
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