Bitcoin [BTC] price held earlier support around $34k over the weekend and is approaching resistance around the price range of $40k to $42k. The world’s leading cryptocurrency has been consolidating for nearly a month as buyers established a solid base of around $30k.
A breakout from the range would yield further upside towards $50k. However, sellers remain on top of things given strong overhead resistance.
At the reporting time, Bitcoin is presently trading at a price of around $40.5k and is up about 13.12% over the past 24-hours.
The short-term trend is improving as the price returned above the 100-period moving average on the 4-hour chart.
There is immediate resistance over $40k which could limit upside, especially as the relative strength index (RSI) appears overbought on the 4-hour chart, for some time.
Minor support is seen around $34k which is the mid-point of the short-term range. If support holds, a decisive breakout over $42k could shift the downtrend from May.