Bitcoin Stabilizes Around $46K After Sell-off; Resistance at $50K
Upside appears to be limited despite short-term relief buying.
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Bitcoin is stabilizing around the 200-day moving average at $46,000 after a sharp sell-off on Tuesday. The cryptocurrency is down about 8% over the past 24 hours, with sellers in control of the $50,000 resistance zone.
Upside momentum has slowed over the past month, although buyers were able to defend support around the $42,000 breakout level achieved Aug. 6. Buying could be limited, however, as overhead resistance remains strong around the $55,000-$60,000 range.
- The relative strength index (RSI) on the four-hour chart is the most oversold since the August 6 breakout above $42,000. This could encourage buyers to return around current support levels.
- However, upside appears to be limited as the RSI on the daily chart is declining from overbought levels last month.
- A lower price high from April is likely as volatility returns this month, limiting buyer strength in the aftermath of Tuesday’s selloff.
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Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.