Bitcoin (BTC) surges higher from a one-week trading range as oversold signals remain intact. The cryptocurrency was trading around €38,400 at press time and has risen 4% over the past week.
The initial resistance is estimated at €40,000, which is a previous support level that was rejected on January 20. Buyers will need to make a decisive move above €40,000-€45,000 to reverse the downward trend since November.
For now, the 20% BTC price drop in January could attract short-term buyers. Traders could bid further on the trading day in Asia if the support at €37,000 holds.
In the long term, the upside seems limited given the signs of negative momentum.