Bitcoin remains quiet below $4000 amid subdued trading action

The BTC/USD pair moved sideways in a relatively narrow range on Tuesday amid a lack of fresh developments that could impact digital currencies' price action. As of writing, the pair was trading at $3910, losing 0.5% on the day.

Today's modest drop seems to be a product of a broad-based greenback strength. Although the US Dollar Index eased back to the 92.80/90 band after rising above the 93 mark for the first time in September, it remains on track to record its highest daily close in more than three weeks. 

Social Capital's Chamath Palihapitiya, one of the earliest investors in Facebook and bitcoin, spoke to CNBC on Tuesday, arguing that governments wouldn't be able to put curbs on the digital currency as it was not controllable. "As far as I'm concerned, the genie is out of the bottle. Now the real question is how can we productively use it to solve some of the society's issues around the financial services infrastructure," Palihapitiya further added, as reported by the CNBC.Nonetheless, his comments weren't enough to lift bitcoin out of its recent slump.

Technical outlook

The RSI indicator on the daily graph for the pair is moving sideways a little below the 50 handle, suggesting that the pair is in a near-term consolidation phase. On the upside, the immediate resistance aligns at $4000 ahead of $4115 (Sep. 18 high) and $4380 (Sep. 12 high). On the downside, supports could be seen at $3650 (Sep. 25 low), $3320 (100-DMA) and $3000 (psychological level).