The price of the leading cryptocurrency, Bitcoin [BTC], approached resistance at around $41k earlier on Monday, which triggered some profit-taking. The month-long range remains in effect as short-term overbought signals limit upside moves. Initial support is seen around $36k, which could stabilize a quick pullback.
Bitcoin was trading around $40k, at the reporting time and is up about 2% over the past 24 hours.
The RSI [Relative Strength Index] on the 4-hour chart reached overbought levels earlier on Sunday shortly after the near 6% price hike earlier on Sunday.
The earlier overbought signal on the RSI occurred on 3rd June before a near-20% sell-off towards the $30k support zone.
There is strong resistance at $41k, which has capped upside moves over the past month.
However, the short-term trend is improving as the daily chart advances from oversold levels. This suggests the corrective phase from May has stabilized as traders await confirmation of a breakout or breakdown from the present range.