Bitcoin Approaching Resistance Near $58K; Support at $50K

Momentum has improved over the past two weeks.

Oct 11, 2021 at 11:25 a.m. UTC
Updated Oct 11, 2021 at 1:39 p.m. UTC

Bitcoin’s (BTC) price continues to rise, now near $56,000, although the rally appears to be exhausted given overbought signals on the charts. The cryptocurrency is up about 14% over the past week and faces resistance between $58,000 and $60,000.

  • The relative strength index (RSI) on the four-hour chart is declining from an overbought extreme last week. A negative divergence between the RSI and price typically leads to a brief pullback similar to what occurred in mid-September.
  • The RSI on the daily chart is approaching overbought levels, suggesting buyers could exit positions near upper resistance levels.
  • Momentum has improved over the past two weeks, which means pullbacks could be limited toward initial support at $50,000.

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Damanick does not own cryptocurrencies.