Share this article
Bitcoin Takes a Breather, Could Find Support at $50K-$52K
Upside momentum is slowing, although pullbacks could be limited into Asian trading hours.
Updated May 11, 2023, 5:12 p.m. Published Oct 12, 2021, 7:30 p.m. 1 min read
Bitcoin buyers are exiting positions as overbought signals appear on the charts. Resistance is seen at around $58,000-$60,000, the level that preceded a price drop in May. This time, however, pullbacks could be limited toward the $50,00-$52,000 support zone.
BTC was trading at around $55,600 at press time and is down 3% over the past 24 hours.
- The relative strength index (RSI) on the four-hour chart is declining from overbought levels last week, which suggests the current pullback could extend into Asian trading hours.
- The RSI is also overbought on the daily chart similar to early September before a price correction occurred.
- For now, immediate support is seen at the 50-period moving average on the four-hour chart, which is at $54,000. Short-term volatility could remain elevated as indicators show a stalemate between buyers and sellers.
More For You
The creator of the Mayer Multiple argues bitcoin’s growing economic substance is compressing volatility and attracting deeper capital.
What to know:
- Bitcoin volatility has dropped from around 120 in 2017 to 35 as institutional participation and options markets add stability to the asset.
- Mayer believes lower volatility makes bitcoin more investable for corporations, family offices, and institutional investors.
- Despite long-term concerns around miner security incentives and quantum computing, Mayer remains bullish...
Top Stories
