Bitcoin Rangebound With Support Near $57,900

Bitcoin (BTC) traded lower during Asia hours as buyers took profit near the $59,000 resistance zone. But selling pressure was limited near $57,900 support. Momentum signals are neutral over the short-term as BTC continues to consolidate.

The relative strength index (RSI) on the hourly chart signaled overbought conditions yesterday. This preceded a near 3% sell-off during Asia hours.
Buyers continue to defend rising support levels from the April 3 price low around $56,500.
For now, BTC continues to trade above its 50-period volume weighted moving average on the hourly chart, which helps to define support and resistance levels during intraday price swings.
BTC has retraced roughly half of its near 6% sell-off from April 1, although price action has been rangebound over the past month.
“A consolidation phase is underway as overbought conditions are absorbed,” wrote Katie Stockton, managing partner of Fairlead Strategies. “A breach of the 50-day moving average near $54,000 would be a reason to manage risk of a pullback given the first major support is uncomfortably far below near $42,000.”

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Damanick Dantes

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