Bitcoin (BTC) is holding support around $55,400 at the time of writing as buyers attempt to erase Tuesday’s losses. Resistance is seen around $56,000 and $58,000, where traders have taken profit over the past few months.

  • The relative strength index (RSI) on the hourly chart is not yet overbought, which suggests about 2%-3% upside to next resistance.
  • Bitcoin remains in a tight range as a pattern of lower highs on the RSI suggests slowing momentum and continued profit taking on rallies.
  • On the daily chart, support around the 100-day moving average preceded price recoveries on April 25 and on May 4 around $53,000. This suggests selling pressure has been limited as BTC consolidates.
  • For now, bitcoin has retraced roughly 38% of the sell-off from May 3 as the short-term trend improves.
CoinDesk - Unknown

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC