The price of the leading cryptocurrency, Bitcoin [BTC], had a pointy 10% pullback after approaching the $40k resistance level earlier on Monday. The cryptocurrency is holding initial support above $36k at the reporting time and is up about 25% over the past week.
While the lower support is seen around $34k which could stabilize the present pullback.
The RSI [Relative Strength Index] on the 4-hour chart reached extreme overbought levels over the weekend as bitcoin rallied. Overbought conditions typically precede price declines as buyers take profits.
The RSI on the daily chart is approaching overbought levels, which might limit bitcoin’s upside beyond the $40k resistance benchmark.
Although the intermediate-term downtrend is improving, bitcoin remains within a consolidation phase between $30k to $40k, which suggests buyers and sellers are in a stalemate despite occasional rallies as well as selloffs.