Bitcoin Approaching Resistance Near $58K; Support at $50K

Bitcoin’s BTC$78,784.09 price continues to rise, now near $56,000, although the rally appears to be exhausted given overbought signals on the charts. The cryptocurrency is up about 14% over the past week and faces resistance between $58,000 and $60,000.

• The relative strength index (RSI) on the four-hour chart is declining from an overbought extreme last week. A negative divergence between the RSI and price typically leads to a brief pullback similar to what occurred in mid-September.
• The RSI on the daily chart is approaching overbought levels, suggesting buyers could exit positions near upper resistance levels.
• Momentum has improved over the past two weeks, which means pullbacks could be limited toward initial support at $50,000.