Bitcoin price is stabilizing between $30,000 and $40,000 as oversold conditions remain intact
Bitcoin price rallied slightly over the weekend on light volume, as most markets in Asia kicked off the week-long Lunar New Year holiday. At press time, the oldest cryptocurrency is changing hands at over $37,040, up slightly over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price moved little as significant markets in Asia’s head into the weeklong Lunar New Year break
The lunar New Year, also known as the Chinese New Year or Spring Festival, is the new year based on the traditional lunisolar calendar of China. Many countries in Asia celebrate it, and the celebration usually lasts for weeks. Major stock indexes in China, Hong Kong, South Korea, and Singapore are closed for the Lunar New Year holiday, as most traders take time off for family reunions.
Bitcoin (BTC) buyers have maintained support at the Jan. 24 low of $32,900 and then held above $35,000 over the past few days. Short-term momentum is improving on intraday charts, which could keep buyers active.
For now, the Relative Strength Index (RSI) on the weekly chart is approaching oversold levels, similar to what occurred in March 2020, which preceded a price rally. However, the monthly chart indicates strong selling pressure that could maintain BTC’s intermediate-term downtrend. On the daily chart, the RSI has risen from oversold levels since Jan. 22, which could attract short-term buyers. Still, longer-term indicators are neutral/bearish, which could limit upside at the $40,000-$43,000 resistance zone.
Bitcoin’s trading volume across significant crypto exchanges sank significantly over the weekend compared with the past week. Ether, the second-biggest cryptocurrency by market capitalization, was trading over $2,600, up slightly over the same period.
The overall cryptocurrency market cap stands at $1.671 trillion, and Bitcoin Dominance is 42%.
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