Bitcoin slips as relief bounce loses steam; support at $27K

Bitcoin slips as relief bounce loses steam; support at $27K

The long-term momentum remains negative and limits the upward movement of the price.

Bitcoin (BTC) pared earlier gains after buyers took profits below the $33,000 resistance level. The cryptocurrency may find support, first at $27,500 and then at $25,000.

The relative strength index (RSI) on the four-hour chart reached oversold levels on Monday, preceding the current pullback in the price. On the daily chart, the RSI returned below the neutral level of 50, indicating a temporary loss of upward momentum.

On the weekly chart, bitcoin seems to be oversold, albeit with negative momentum signals. This suggests that the uptrend may be limited beyond $35,000.

Right now, BTC is about a week away from registering a signal of exhaustion to the downside, as it did on June 7 last year and January 10 this year. Still, a weekly close above $30,000 is needed to confirm a short-term upside signal.

Should further breakouts occur, secondary support is seen at $17,673.