Bitcoin Holds Support, Faces Resistance at $58K-$60K
BTC buyers continue to take profits on recoveries.
May 7, 2021 at 11:32 a.m. UTCUpdated Mar 6, 2023 at 3:07 p.m. UTC
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Bitcoin (BTC) held support at around $54,000 after buyers took profits at around the $58,000 resistance level on Thursday. The cryptocurrency was trading at about $56,500 at the time of writing.
Although the short-term trend is improving, traders have been quick to take profits on rallies. Slowing momentum is typical of a consolidation phase, which suggests traders are taking a breather following a nearly twofold price increase in BTC over the past year.
- Bitcoin remains above the 100-period moving average on the four-hour chart and daily chart. That indicates an improving short-term trend, albeit with resistance at around $58,000.
- BTC has retraced about 50% of the April 14 sell-off from an all-time high of about $64,900.
- The relative strength index (RSI) is neutral across short-term charts and has receded from extreme overbought levels on the long-term weekly chart.
- Initial support is seen at around $54,000 and then at $52,000, which has limited profit-taking during the past week.
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