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Bitcoin Stabilizes at Support; Faces Resistance Around $50K-$53K
BTC continues to consolidate and is now at the bottom of a three-month range.
Updated Mar 6, 2023, 3:20 p.m. Published May 18, 2021, 11:38 a.m. 1 min read
Bitcoin (BTC) buyers continued to defend support around $42,000 on Monday. The sell-off that began last week appears to be weakening as the cryptocurrency registers oversold signals. However, upside appears limited towards $50,000-$53,000 resistance.
The cryptocurrency was trading around $45,000 at the time of writing.
- The relative strength index (RSI) on the four-hour chart is now oversold similar to the last week in April, which preceded a price bounce.
- The RSI is also oversold on the daily chart and is neutral on the weekly chart, which could signal a brief price recovery as sellers capitulate.
- Initial resistance is around $50,000 and then at the 100-period moving average on the four-hour chart at $53,000.
- Bitcoin continues to consolidate and is now at the bottom of a three-month range. The broader uptrend remains intact, albeit vulnerable to sharp swings and frequent drawdowns.
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Investors are abandoning bitcoin and gold, perhaps sensing a coming end to Middle East hostilities.
What to know:
- JPMorgan says the pandemic-era “debasement trade,” centered on bitcoin and then gold, is cooling, with recent outflows from bitcoin and gold ETFs and reduced institutional futures positions reflecting a broader pullback from macro hedges.
- The bank's report suggested investors may be getting ahead of a U.S.-Iran peace deal.
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