Bitcoin (BTC) is in recovery mode after a sharp correction this week. The cryptocurrency held support near $30,000 and was trading around $40,000 at press time. Volatility should remain high into the weekend and next week with upside limited towards $45,000 resistance.
The relative strength index (RSI) on the daily chart is oversold, which could keep buyers active at support levels.
Bitcoin returned above the 100-day moving average, which should stabilize selling pressure.
The broader uptrend is weakening but price will have to stay above $40,000 to maintain a bullish outlook.
Resistance is seen around the 50-day volume-weighted moving average around $45,000, which could limit price recoveries over the short term.
Daily bitcoin chart shows support and resistance levels with oversold RSI.
Source: TradingView
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