Bitcoin Long-Term Uptrend Intact; Support Around $53K-$56K
Momentum is still positive on a weekly basis, which is consistent with a bullish uptrend.
Nov 19, 2021 at 7:23 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/XHVSVGH445HXDM3NZWBQMLPJPE.png)
Bitcoin weekly price chart shows long-term uptrend with positive momentum in first panel and RSI declining from overbought levels in lower panel.
Bitcoin (BTC) is stabilizing after a near 10% decline over the past week. The cryptocurrency is holding initial support above $56,000, although resistance around $65,000 could limit further upside over the short term.
The relative strength index (RSI) is oversold on intraday charts, which could encourage brief buying activity. On the daily chart, the RSI is approaching oversold conditions similar to late September, which preceded a price recovery.
On the weekly chart, bitcoin’s long-term uptrend remains intact given the upward sloping 40-week moving average. Momentum is still positive on a weekly basis, which is consistent with a bullish uptrend. And the monthly price chart shows no signs of upside exhaustion yet.
However, the weekly RSI is declining from overbought levels, albeit less extreme relative to January. This means bitcoin is vulnerable to higher volatility as buyers take some profits.
For now, bitcoin will need to hold support and sustain a breakout above $69,000 in order to yield an upside target toward $85,000.
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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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