Bitcoin (BTC) bounced towards $30,000 on Friday as buyers reacted to oversold conditions. Still, the uptrend seems limited and the cryptocurrency could face resistance at $33,000 and $35,000.
Momentum signals remain negative on daily, weekly, and monthly charts, which usually leads to a period of low or negative returns. In addition, according to Coinbase price data provided by TradingView, BTC is on track for its first consecutive seven-week decline dating back to 2014. This is another sign of negative price momentum.
Right now, BTC is approaching lower support near the 200-week moving average, currently at $21,800. Immediate support lies between $27,000 and $30,000, which could stabilize price action in the coming days.
Short-term counter-trend signals also appeared on the charts on Thursday, which usually lead to a short price increase.
The Relative Strength Index (RSI) on the weekly chart is more oversold than it has been since March 2020, although strong resistance and negative momentum suggest a limited uptrend in the coming months.