Bitcoin returns above $30K; resistance at $35K

Bitcoin returns above $30K; resistance at $35K

BTC seems to be oversold, although trading conditions have been volatile in recent days.

Bitcoin (BTC) held short-term support above $27,500 as buyers responded to oversold conditions on the charts. The cryptocurrency may face resistance at $35,000, where the current downtrend accelerated earlier this month.

At press time, BTC was trading at $30,100, up 3% in the last 24 hours.

The Relative Strength Index (RSI) on the daily chart is rising from oversold levels, which could keep short-term buyers active. In addition, short-term momentum is improving, similar to early March when there was a brief price rally.

DeMARK indicators signaled a trend reversal on BTC's daily chart on May 12, alongside major stock indices. This suggests that a relief rally in speculative assets could delay further price declines.

Still, BTC needs to close above $30,000 on a weekly basis (and above $4,000 for the S&P 500) to confirm short-term upside signals. For now, the uptrend seems limited due to negative momentum signals on the weekly and monthly charts.