Bitcoin Rally Holds Support Above $52K, Next Resistance Near All-Time High

Pullbacks could be limited given strong upside momentum.

Oct 7, 2021 at 11:24 a.m. UTC

Updated Oct 7, 2021 at 1:17 p.m. UTC

Bitcoin daily price chart (CoinDesk, TradingView)

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.

Bitcoin (BTC) continues to strengthen after breaking above $50,000 earlier this week and rallying Thursday to a five-month high.

The cryptocurrency was trading around $54,000 at press time and is up 5% over the past 24 hours. Overbought signals suggest risk of a pullback, albeit limited to support around $50,000-$52,000.

The intermediate-term uptrend has improved over the past few months, which could keep buyers active toward the all-time high near $64,000.

The relative strength index (RSI) is the most overbought since September, which preceded a correction. However, a similar downturn is unlikely given strong upside momentum and a series of breakouts on the charts.
Buyers will need to hold support above $48,000-$50,000 in order to resume the recent rally.
BTC is not yet overbought on the weekly chart, which points to further upside.

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