Bitcoin (BTC) stabilized around the $30,000 support level, which could keep short-term buyers active. Nevertheless, the uptrend seems to be limited, initially towards the next resistance level at $35,000.
At press time, BTC was trading at around $31,300 and has remained about the same over the past 24 hours - a 16% decline over the past week. Several alternative cryptocurrencies (altcoins) have outperformed BTC over the past 24 hours, suggesting greater risk appetite among short-term traders.
Typically, BTC falls less than altcoins during market rallies because it has a lower risk profile compared to smaller tokens.
The Relative Strength Index (RSI) on the daily chart is rising from extremely oversold levels, which could support a short relief rally, similar to what happened in late January. However, this time negative momentum signals have increased the chance of further dips on the chart.
In addition, the 14-day moving average of volumes (based on Coinbase exchange data provided by TradingView) has increased, which could be the first sign of capitulation. Still, current volumes are lower than last June, when BTC settled at around $30,000.