Bitcoin (BTC) is stabilizing around the $30,000 level after last week's massive sell-off. The cryptocurrency needs to stay above the support zone between $27,000 and $30,000 this week to generate a positive short-term momentum signal.
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BTC was trading around $29,500 at the time of publication and is down 2.69% in the last 24 hours.
The Relative Strength Index (RSI) on the daily chart is rising from oversold territory, which could keep buyers active at support. The RSI on the weekly chart is also oversold, although the negative momentum could limit the upside.
Immediate resistance is seen between $33,000 and $35,000, where a dip occurred earlier this month. This suggests that a large number of sell orders could limit a recovery rally over the next two weeks.
In addition, the recent underperformance of alternative cryptocurrencies (altcoins) compared to bitcoin suggests a lower risk appetite among cryptocurrency traders. In general, altcoins fall more than bitcoin in down markets due to their higher risk profile. The generally risk-averse environment could keep BTC's short-term downtrend intact.
This article was translated by Marina Lammertyn.