Bitcoin Rangebound With Support Near $57,900

Bitcoin (BTC) traded lower during Asia hours as buyers took profit near the $59,000 resistance zone. But selling pressure was limited near $57,900 support. Momentum signals are neutral over the short-term as BTC continues to consolidate.

• The relative strength index (RSI) on the hourly chart signaled overbought conditions yesterday. This preceded a near 3% sell-off during Asia hours.
• Buyers continue to defend rising support levels from the April 3 price low around $56,500.
• For now, BTC continues to trade above its 50-period volume weighted moving average on the hourly chart, which helps to define support and resistance levels during intraday price swings.
• BTC has retraced roughly half of its near 6% sell-off from April 1, although price action has been rangebound over the past month.
• “A consolidation phase is underway as overbought conditions are absorbed,” wrote Katie Stockton, managing partner of Fairlead Strategies. “A breach of the 50-day moving average near $54,000 would be a reason to manage risk of a pullback given the first major support is uncomfortably far below near $42,000.”