Bitcoin Holds Support Around $53K; Resistance Zone Within Reach

Bitcoin (BTC) held short-term support around $53,000 and is now approaching resistance around $58,000-$59,000. Buyers are entering after a near 15% sell-off triggered oversold readings during the weekend. The cryptocurrency was trading around $56,000 at press time.

For now, the high-volume sell-off on April 17 suggests capitulation as buyers were quick to defend the price low just above $51,000.
The drawdown (percentage decline from peak to trough) of the April 17 sell-off was the worst since March 25, but not as extreme as in January.
Resistance is now seen around the 200-day moving average on the hourly chart, which could limit upside over the short term.
BTC is attempting to break above a series of price lows from April 17, which suggests support around $53,000 will hold over the short term.

Chart shows BTC drawdown (percent decline from peak to trough).

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