The broader uptrend remains intact despite several months of consolidation. Sharp price moves are typical during consolidation phases, which can result in frequent drawdowns.
- The relative strength index (RSI) on the hourly chart registered an oversold reading after Monday’s decline, which suggests a brief price recovery is underway.
- Bitcoin held support around $54,000 along a series of higher price lows over the past few weeks.
- Resistance is seen around the 100-period moving average on the hourly chart around $57,000 which could limit price gains.
- Bitcoin has traded in a range between $53,000 and $59,000 as buyers struggle to retrace the April 14 sell-off.