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Bitcoin Rangebound, Holding Support Above $46K
The cryptocurrency is roughly flat over the last week.
Updated May 11, 2023, 4:33 p.m. Published Aug 31, 2021, 11:19 a.m. 1 min read
Bitcoin BTC registered a series of lower price highs over the past few days as buyers continue to take profits. The cryptocurrency is stuck in a tight range between $46,000 support and $50,000 resistance and is roughly flat over the past week.
A consolidation phase is likely to persist this week as the Aug. 6 price breakout above $42,000 appears to be exhausted.
- The relative strength index (RSI) is almost oversold on the four-hour chart, similar to Aug. 19 and Aug. 26, which preceded brief price bounces.
- Initial support is seen at around the 100-period moving average of $47,000 on the four-hour chart.
- Short-term momentum is deteriorating, which is typical during a consolidation phase. If the $46,000 support level is broken, however, there is risk of a deeper pullback toward the $42,000 breakout level.
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Open interest held steady and funding stayed subdued during the recent liquidation wave, suggesting traders were de-risking rather than capitulating, according to HashKey Research's Tim Sun.
What to know:
- Bitcoin hovered around $77,700 after a brief drop below $77,000, with derivatives data suggesting the move was a leverage flush rather than the start of a deeper downturn.
- Analysts say the $75,000 to $77,000 range remains a key support zone, as liquidations were split between longs and shorts and did...
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