Sellers were active during Asia hours, pushing bitcoin (BTC) below intraday trend support. The broader uptrend continues to slow, with lower support around $50,000 and then $42,000.
- BTC is roughly 15% below its March high after failing to sustain moves above $61,000.
- Sideways trading over the past few days resulted in a 10% decline from trend line support on the four-hour chart.
- The relative strength index (RSI) is now oversold on the four-hour chart, which could encourage minor short covering at current levels.
- Resistance around $58,000 could limit short-term recoveries, especially as the longer-term trend continues to slow, as CoinDesk has reported.
- “We expect the long-term uptrend to moderate as intermediate-term overbought conditions are absorbed,” said Katie Stockton, managing partner of Fairlead Strategies. “Initial support for bitcoin remains near $42,000, far enough below current levels to dictate attention to risk management for long positions.”
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.