Bitcoin Sell-Off Leaves Cryptocurrency in Weakening Short-Term Trend

The daily RSI is approaching oversold territory, which could attract short-term buyers.

AccessTimeIconApr 23, 2021 at 11:21 a.m. UTC
Updated Mar 6, 2023 at 3:27 p.m. UTC
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Bitcoin (BTC) broke below short-term support around $50,000 during Asia hours. The cryptocurrency was trading around $49,500 at press time and is now oversold on intraday charts, which could stabilize the decline.

  • BTC’s April 17 price low just below $51,000 was taken out, which triggered oversold readings on the four-hour relative strength index (RSI).
  • The daily RSI is also approaching oversold territory, which could attract short-term buyers.
  • However, there is strong resistance around $54,000-$55,000, which could limit price recoveries.
  • BTC is now roughly 27% below the April 14 all-time high just below $65,000. This suggests the short-term trend is weakening as BTC approaches stronger support around the $42,000 level.

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