Bitcoin (BTC) held short-term support around $53,000 and is now approaching resistance around $58,000-$59,000. Buyers are entering after a near 15% sell-off triggered oversold readings during the weekend. The cryptocurrency was trading around $56,000 at press time.
- For now, the high-volume sell-off on April 17 suggests capitulation as buyers were quick to defend the price low just above $51,000.
- The drawdown (percentage decline from peak to trough) of the April 17 sell-off was the worst since March 25, but not as extreme as in January.
- Resistance is now seen around the 200-day moving average on the hourly chart, which could limit upside over the short term.
- BTC is attempting to break above a series of price lows from April 17, which suggests support around $53,000 will hold over the short term.