Buyers defended support around $55,000 this week, with bitcoin (BTC) currently trading around $58,500. There is strong resistance around $60,000, which has been tested multiple times since March.
- The oversold reading on the four-hour relative strength index (RSI) on April 7 preceded a near 5% rise in BTC. The last oversold reading on March 25 preceded a near 19% price rally.
- BTC is attempting to break above a series of lower price highs since April 1, which suggests buyers are gaining strength as sellers retreat.
- Intraday support is around $56,934. The four-hour RSI is not yet overbought, which indicates further upside over the short term.
- However, BTC’s uptrend on daily and weekly charts is slowing. A decisive break above $60,000 is needed to support the long-term uptrend. For now, traders have adhered to narrow price zones with lower volume as BTC consolidates.