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Bitcoin Slips as Relief Bounce Loses Steam, Support at $27K

Bitcoin (BTC) buyers took some profits below the $33K resistance level. Long-term momentum remains negative, capping upside moves in price. For now, lower support is at $25K-$27K.Read MoreFeedzy

Bitcoin (BTC) pared earlier gains after buyers took some profits below the $33,000 resistance level. The cryptocurrency could find support, initially at $27,500 and then at $25,000.

The relative strength index (RSI) on the four-hour chart reached oversold levels on Monday, which preceded the current pullback in price. And on the daily chart, the RSI returned below the 50 neutral mark, indicating a temporary loss in upside momentum.

On the weekly chart, bitcoin appears to be oversold, albeit with negative momentum signals. That suggests upside could be limited beyond $35,000.

For now, BTC is roughly one week away from registering a downside exhaustion signal, which previously occurred on June 7 of last year and on Jan. 10 this year. Still, a weekly close above $30,000 is needed to confirm a bullish short-term signal.

If further breakdowns occur, secondary support is seen at $17,673.

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