Bitcoin Rally Stalls; Could Find Support at $63K-$65K

Buyers could return on price dips into the Asian trading session.

Nov 9, 2021 at 6:40 p.m. UTC
Updated Nov 9, 2021 at 8:09 p.m. UTC

Bitcoin (BTC) is giving up some gains after reaching an all-time high near $68,500 on Monday. The cryptocurrency is overbought on intraday charts, although support around the $63,000-$65,000 range could stabilize a pullback.

The relative strength index (RSI) on the four-hour chart is the most overbought since Oct. 20, which preceded a near-10% price decline. Still, pullbacks have been shallow over the past few weeks as buyers remain active on breakouts.

The 100-day moving average on the four-hour chart is sloping upward, indicating positive trend strength over the short term. This means buyers could eventually return on price dips into the Asian trading session.

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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio manager at Cannon Advisors, which does not invest in digital assets. Damanick does not own cryptocurrencies.