Bitcoin Holds Support; Next Resistance at $50K

Buyers could remain active on pullbacks this week as bitcoin cleared important technical levels.

Aug 9, 2021 at 11:25 a.m. UTC
Updated Sep 14, 2021 at 1:37 p.m. UTC

Bitcoin (BTC) rallied above $45,000 as upside momentum improved over the past two weeks. The next level of resistance is seen at $50,000, which could limit further upside given short-term overbought signals. Bitcoin is up about 2% over the past 24 hours – around $45,600 at press time and holding support above $40,000.

  • The relative strength index (RSI) on the daily chart is overbought for the second time since July 31, which preceded a near-10% price decline.
  • However, the weekly RSI is rising from neutral levels with a positive momentum signal for the first time since October 2020, which reignited the long-term uptrend.
  • Buyers could remain active on pullbacks this week as bitcoin cleared important technical levels such as the 100-day moving average.   

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