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.   

DISCLOSURE

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.