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

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 Dantes

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.

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

Momentum has improved over the past two weeks.