Bitcoin (BTC) selling pressure is starting to wane after last week’s price dip. The cryptocurrency is holding short-term support around $40,000, although upside appears to be limited near $43,000-$45,000.
BTC is down about 2% over the past 24 hours, although the price action has been fairly muted over the past few days.
The relative strength index (RSI) on the four-hour chart is rising from oversold levels, which typically precedes a brief price bounce. On the daily chart, the RSI is the most oversold since Dec. 10.
Upside momentum has weakened given BTC’s two-month long downtrend. This means sellers could remain active around resistance levels.