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.
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BTC was trading at $30,000 at the time of this writing and is up 3% in the last 24 hours.
The Relative Strength Index (RSI) on the daily chart is rising from oversold territory, which could keep short-term buyers active. In addition, the short-term momentum is improving, similar to early March when a brief relief rally in the price preceded it.
According to DeMARK indicators, a signal of a trend reversal was indicated on the daily chart of BTC on May 12, along with the 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. Currently, the upside potential seems limited due to negative momentum signals on the weekly and monthly charts.
This article was translated by Marina Lammertyn.