Bitcoin (BTC) continued to slide over the weekend and is now down about 20% for the month to date. The cryptocurrency approached initial support around $42,000 which could stabilize the sell-off. Price recoveries remain limited, evidenced by several months of slowing momentum, suggesting that sellers remain in control.
Bitcoin is trading around $44,800 at the time of writing.
- The relative strength index (RSI) on the daily chart is now oversold similar to April 25, which preceded a near 20% price recovery.
- Bitcoin is below the 100-day moving average, which is now resistance at $54,000. However, BTC will likely face immediate resistance at the $50,000 level as the uptrend weakens.
- If initial support at $42,000 is broken, the next level of support is seen around $34,286, which is roughly a 50% retracement of the March 2020 low.
- Bitcoin remains in a consolidation phase after failing to sustain moves above $64,000. An intermediate term bullish to bearish trend reversal is on watch, especially as sell signals appear on the weekly chart.
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.