Bitcoin Stalls at $57K Resistance, Lower Support Around $53K

“Short-term momentum remains positive, but far less so than in February,” writes one analyst.

Mar 17, 2021 at 11:19 a.m. UTC
Updated Sep 14, 2021 at 12:27 p.m. UTC

Bitcoin (BTC) continues to struggle after failing to hold an all-time-high around $60,000 over the weekend. On the hourly chart, resistance is around $57,000 with short-term support around $53,000.

  • Traders continue to experience limited upside intraday, with oversold moves capped around the 50-period volume weighted moving average since the March 15 sell-off.
  • On the daily chart, bitcoin’s uptrend remains intact, although lower highs on the relative strength index (RSI) indicates slowing momentum.
  • “Short-term momentum remains positive, but far less so than in February,” writes Katie Stockton, managing partner of Fairlead Strategies.

From a long-term perspective, the outlook for bitcoin remains constructive, although drawdowns can be sharp and fast during the late stage of a rally, as seen in the chart below.  This suggests tighter stops should be used, especially until short-term trend signals improve.

Chart shows bitcoin's extended drawdowns during bear markets, and frequent whipsaws around the end of bull markets.

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