Bitcoin (BTC) continues to consolidate above the $42,000 support level as short-term momentum improves. The cryptocurrency was trading around $45,900 at press time, which is near the 200-day moving average and is up about 2% over the past 24 hours.
Buyers are returning, although the upside appears to be limited towards $48,000 to $50,000 resistance over the short-term.
- The relative strength index (RSI) on the four-hour chart is rising from oversold levels last week and is not yet overbought. This could encourage a brief price bounce.
- Bitcoin remains below the 100-period moving average on the four-hour chart, which was rejected during the sell-off last week.
- BTC will likely consolidate around the current support zone, albeit vulnerable to higher volatility.