Bitcoin (BTC) is recovering above the $40,000-$42,000 support zone after oversold signals appeared on the charts. Initial resistance is seen around $46,000, which could limit further upside over the short-term.
BTC was trading around $43,700 at press time and is up 4% over the past 24 hours.
The relative strength index (RSI) on the four-hour chart is rising from oversold levels that appeared earlier this week. The RSI is not yet overbought, which could keep buyers active, albeit limited towards $46,000 resistance.On the daily chart, however, the RSI is approaching neutral levels, which suggests further consolidation is needed to recapture upside momentum.Resistance remains strong towards $50,000 as bitcoin registered a series of lower price highs over the past two weeks.