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.
Hourly BTC chart shows support and resistance levels.
Source: TradingView
Chart shows BTC drawdown (percent decline from peak to trough).
Source: Koyfin
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