Bitcoin Eases After Rejection at $58.5K, Support at $54K

A key technical indicator signals that upward momentum may be over.

Oct 14, 2021 at 10:49 a.m. UTC
Updated Oct 14, 2021 at 5:57 p.m. UTC

Bitcoin looks heavy on short-duration technical charts after it failed to keep gains above $58,000 early Thursday. The cryptocurrency was trading near $57,350 at press time.

  • On the chart above, the relative strength index (RSI) has decoupled from the rising price since Oct. 6. The indicator’s negative divergence suggests a loss of upward momentum and scope for a pullback.
  • The immediate support is seen at $54,000, a level where buyers have consistently stepped in over the past week. A drop below there would allow for a slide to $50,000.
  • Progress above daily highs near $58,500 is needed to negate RSI’s bearish divergence and open the doors for new record highs above $64,801.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Omkar Godbole is the senior reporter on CoinDesk's Markets team.

Trending