Bitcoin's Recovery Stalls; Lower Support Around $52K

Bitcoin (BTC) has traded in a tight range over the past few days, which suggests buyers are losing strength. The recovery from the April 17 sell-off appears weak with a cluster of resistance levels from $56,000-$59,000. The cryptocurrency was trading around $55,000 at press time.

• BTC has broken its uptrend since March on the four-hour chart and failed to reverse a series of lower price highs since April 1.
• Support is seen around the April 17 sell-off low just below $52,000.
• The relative strength index (RSI) on the four-hour chart registered an oversold reading during the weekend sell-off and is now neutral.
• BTC is back in a consolidation phase that began around February. Since then, price rallies have been limited around the $60,000 resistance zone with frequent drawdowns of roughly 15%-20%.