Bitcoin Holds Short-Term Support at $54K, Resistance Seen at $58K: Technical Analysis

Bitcoin is oversold and at trend support on intraday charts, but still faces heavy resistance around $58,000.

Mar 16, 2021 at 11:20 a.m. UTC

Updated Sep 14, 2021 at 12:27 p.m. UTC

Bitcoin (BTC) buyers defended short-term support around $54,000 but will face heavy resistance around $58,000. On the four-hour chart, bitcoin is now the most oversold since the Feb. 28 low around $42,900, which preceded a near 40% price rally.

The long-term trend is still weakening, defined by lower highs on the relative strength index (RSI), which was noted on the daily price chart.
Slowing upside momentum indicated profit taking around the $60,000 price level, as expected in earlier posts.
For now, bitcoin will need to hold above the $54,000 level to sustain its uptrend on the four-hour chart. If bitcoin breaks this level, lower support is seen around $50,000 and then $46,000.

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