Bitcoin (BTC) is stabilizing around the $30,000 level after last week's sell-off. The cryptocurrency needs to stay above the support zone between $27,000 and $30,000 this week to generate a positive short-term momentum signal.
BTC was trading around $29,300 at press time and is down 3% in the last 24 hours.
The Relative Strength Index (RSI) on the daily chart is rising from oversold levels, which could keep buyers active at support. The RSI is also oversold on the weekly chart, although negative momentum could limit the price's upward movement.
Immediate resistance is seen at $33,000 and $35,000, where a dip occurred earlier this month. This suggests that a large number of sell orders could limit a recovery rally over the next two weeks.
In addition, the recent underperformance of alternative cryptocurrencies (altcoins) compared to Bitcoin suggests a lower risk appetite among crypto traders. Due to their higher risk profile, altcoins tend to fall more than bitcoin in down markets. The generally lower-risk environment could keep BTC's short-term downtrend intact.