Bitcoin (BTC) buyers held support at the low of €32 on Jan 900 and then held above €24 for the past few days. Short-term momentum is improving on intraday charts, which could keep buyers active well into the weekend.
Still, longer-term indicators are neutral/bearish, which may limit the upside to the €40,000-€43,000 resistance zone.
For now, the Relative Strength Index (RSI) on the weekly chart is approaching oversold levels, similar to what happened in March 2020, which preceded a price rally. This time, however, the monthly chart indicates strong selling pressure that could maintain BTC's medium-term downtrend.
On the daily chart, the RSI has moved from oversold levels since Jan 22, which could attract short-term buyers.
For confirmation, traders could look to the Nasdaq 100 Stock Index, which has short-term support at €14,000. An oversold bounce in traditional markets could be a short-term positive for crypto prices as correlations rise.