Bitcoin (BTC) is rising toward the top of a week-long trading range as oversold signals remain intact. Oversold refers to investors believing the asset is trading below its true value. BTC was trading around $38,400 at press time and is up 4% over the past week.
Initial resistance is seen at $40,000, which is an old support level that was rejected on Jan. 20. Buyers will need to make a decisive move above $40,000-$45,000 in order to shift the downtrend since November.
For now, BTC’s 20% price decline in January could attract short-term buyers. Traders could place additional bids into the Asia trading day if support at $37,000 holds.
Over the long term, upside appears limited given negative momentum signals.