Bitcoin Could Find Support at $56K-$60K

Upside momentum is starting to slow, especially given recent overbought signals on the charts.

Nov 11, 2021 at 7:36 p.m. UTC
Updated Nov 11, 2021 at 7:53 p.m. UTC

Bitcoin (BTC) buyers took some profits after the cryptocurrency reached an all-time price high near $68,950 on Wednesday. The cryptocurrency is down about 2% over the past 24 hours and could find lower support around the $56,000-$60,000 price range.

Upside momentum is starting to slow, especially given recent overbought signals on the charts. This suggests BTC’s pullback could extend into Asian trading hours, although buyers will likely return around $60,000.

The relative strength index (RSI) on the daily chart is at the highest level since Oct. 20, which preceded a near-10% drop in BTC’s price.

Further, BTC’s recent all-time price high occurred on lower trading volume and a weaker RSI reading, which means additional buying activity could be limited over the short term.

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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.