Bitcoin relief bounce meets resistance at $33K-$35K

Bitcoin relief bounce meets resistance at $33K-$35K

Buyers are responding to the oversold conditions, even though the uptrend seems to be limited.

Bitcoin (BTC) broke a short-term downtrend over the weekend and regained the $30,000 level. The cryptocurrency is experiencing a relief bounce after several weeks of oversold levels on the charts. Still, resistance at $33,000 and $35,000 could slow down the price upswing.

At press time, BTC was trading at $31,900 and is up 4% in the last 24 hours.

The Relative Strength Index (RSI) on the daily chart has recovered from oversold levels over the past two weeks, supporting the rise in price momentum. The RSI on the 14-day line is currently neutral and needs to stay above 50 to support the upswing.

On the weekly chart, the RSI is more oversold than it has been since March 2020, when a crypto rally took place. This time, however, the significant loss of long-term momentum suggests that the upside may be limited.

For now, the price could stabilize above the support zone between $27,000 and $30,000, which could delay further breakthroughs on the chart.