Bitcoin (BTC) sellers were active during Asia hours after China’s central bank declared cryptocurrency related business illegal. BTC slipped below $42,000 and is down about 3% over the past 24 hours. Initial support is seen at $40,000, which could stabilize the pullback.
A series of lower price highs from the $50,000 resistance level reflects slowing upside momentum this month. The intermediate-term uptrend has weakened, although short-term buyers could defend lower support levels into the weekend.
The relative strength index (RSI) on the daily chart is rising from oversold levels last week, which could limit additional selling.The 100-day moving average at $40,000 could provide short-term support. If broken, the next level of support is seen around $36,000, which is the middle of a four-month price range.Resistance remains strong above $46,000 as buyers continue to take profits.