Bitcoin Decline Could Stabilize at $60K Support

Short-term upside appears to be limited given the loss of upside momentum.

Nov 12, 2021 at 6:27 p.m. UTC
Updated Nov 12, 2021 at 9:21 p.m. UTC

Bitcoin (BTC) dipped below $65,000 as buyers continue to take some profits. The cryptocurrency was trading at around $64,000 at press time and is down 2% over the past 24 hours.

Lower support is seen at about $60,000, which could stabilize the current pullback.

The relative strength index (RSI) on the four-hour chart is near oversold levels, similar to Oct. 27, which preceded a nearly 10% increase in price. This time, however, buyers could face resistance at around $65,000, given the loss of upside momentum this week.

Indicators suggest a period of consolidation could persist after upside exhaustion signals appeared on the charts yesterday. Further, a negative divergence on the daily RSI suggests limited upside over the short term.

The weekly chart shows improving price momentum, although a decisive breakout above $69,000 needs to be confirmed before projecting upside targets.

DISCLOSURE

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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.