The BTCUSD pair has started to trade back above its calculated monthly pivot point, which is located close to the $39,100 level.
The Relative Strength Index indicator on the daily-hour time frame has corrected from overbought conditions and continues to generate a buy signal.
What the possible outcomes are
In our most likely scenario, the BTCUSD pair starts to rally towards its 200-day moving average now that oversold technical indicators, such as the RSI, have had a full reset.
Alternatively, the BTCUSD pair may drop towards the $37,000 support area and then stage a big counter-rally towards the $42,700 level.
Support $38,000 $37,000
Resistance $42,700 $44,500