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Bitcoin Holds Support; Faces Resistance at $50K
BTC remains in a consolidation phase after failing to sustain moves above $64,000.
Updated Mar 6, 2023, 2:57 p.m. Published May 17, 2021, 11:30 a.m. 1 min read
Bitcoin (BTC) continued to slide over the weekend and is now down about 20% for the month to date. The cryptocurrency approached initial support around $42,000 which could stabilize the sell-off. Price recoveries remain limited, evidenced by several months of slowing momentum, suggesting that sellers remain in control.
Bitcoin is trading around $44,800 at the time of writing.
- The relative strength index (RSI) on the daily chart is now oversold similar to April 25, which preceded a near 20% price recovery.
- Bitcoin is below the 100-day moving average, which is now resistance at $54,000. However, BTC will likely face immediate resistance at the $50,000 level as the uptrend weakens.
- If initial support at $42,000 is broken, the next level of support is seen around $34,286, which is roughly a 50% retracement of the March 2020 low.
- Bitcoin remains in a consolidation phase after failing to sustain moves above $64,000. An intermediate term bullish to bearish trend reversal is on watch, especially as sell signals appear on the weekly chart.
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Ether drops below $2,000 amid heavy selling pressure, yet futures open interest hits a record high. This divergences suggests aggressive shorting.
What to know:
- Ether has fallen below $2,000 for the first time since March amid rising risk aversion, with losses of nearly 8% over the past week.
- Open interest in ether futures has hit a record high even as prices drop, a combination that suggests aggressive leveraged selling and a bearish market tilt.
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