Bitcoin (BTC) appears to be oversold on the charts, which usually precedes a short-term price bounce.
The cryptocurrency dipped towards $25,400 before quickly recovering above the $27,000 support level. BTC is down 2% in the last 24 hours and 20% in the last week.
The Relative Strength Index (RSI) on the daily chart is more oversold than it has been since January, when a 30% recovery rally preceded it. This time, however, negative long-term momentum could limit upside moves around the $35,000 resistance level.
Moreover, according to DeMARK indicators on the daily chart, BTC has registered a signal of trend reversal. This means that selling pressure could ease in the coming days as buyers return from the sidelines. Another daily close above $30,000 would confirm the counter signal, although the chance of a clear uptrend from here is slim.