Bitcoin Rallies Above $47K, Resistance at $50K

Technical indicators show improving upside momentum.

Oct 1, 2021 at 11:26 a.m. UTC
Updated Oct 1, 2021 at 3:02 p.m. UTC

Bitcoin (BTC) returned above $47,000 for the first time in two weeks, indicating strong demand from short-term buyers. The next level of resistance is seen at $50,000, where some profit taking occurred in early September.

Technical indicators show improving upside momentum on the daily chart, which is the first positive reading since July. This means the intermediate-term uptrend is stabilizing, albeit within a range of $40,000 support and $50,000 resistance.

  • The relative strength index (RSI) is not yet overbought on the daily chart, which could keep buyers active over the short term.
  • On the weekly chart, the RSI is neutral, and upside momentum remains weak. This suggests a period of consolidation could persist below the $50,000 to $55,000 resistance range.
  • Buyers defended support around $40,000 over the past few days, which is also where a price breakout occurred on Aug. 6. Further, BTC is back above the 200-day moving average, which provides an advantage for buyers aiming to return on pullbacks.

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Damanick does not own cryptocurrencies.