Bitcoin (BTC) is trading above the $40,000 support level and is up about 3% over the past 24 hours. Buyers are starting to return to the market, although upside appears to be limited to the $45,000 resistance level, which is also near the 200-day moving average.

On intraday charts, upside momentum is improving, which suggests buyers could remain active into the Asia trading day.

BTC is the most oversold since Dec. 10, according to the relative strength index (RSI) on the daily chart. Typically, oversold readings precede price recoveries, similar to what occurred in late September. This time, however, price reaction to the RSI and other indicators has been delayed.

Still, on the weekly chart, the RSI is not yet oversold, which decreases the chance of significant buying pressure.