Bitcoin is currently rebounding from very oversold levels after experiencing a relatively large sell-off. Yesterday was the first time since August that the RSI 8-hour time frame hit oversold, so a bounce is expected.

The key purple support area is currently being retested as resistance. A rejection here would confirm a breakout of 40k with a possible move towards 35k.

If Bitcoin is able to close above the purple zone this week, we must consider the idea that this bearish move is merely a correction and not a shift in the long-term trend#BTC