Bitcoin Holds Support at $56K, Resistance at $60K-$63K
Momentum is improving as oversold readings appear on the chart.
Nov 23, 2021 at 6:56 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/L7VFJJZAWNFOHAM3JNX3Q7H4II.png)
Bitcoin four-hour price chart shows short-term price levels with oversold RSI in second panel. (Damanick Dantes/CoinDesk, TradingView)
Bitcoin (BTC) appears to be oversold, which could support a brief rise toward the $60,000-$63,000 resistance zone.
The cryptocurrency has held short-term support at about $56,000 as selling pressure has stabilized.
The relative strength index (RSI) is rising from oversold levels, similar to what happened on Oct. 27, which preceded a price recovery. On the daily chart, the RSI is approaching oversold levels for the first time since late-September.
Further, bitcoin’s correction from an all-time high of nearly $69,000 appears to be exhausted, which could encourage buyers to return. Momentum is improving into the Asian trading day, although resistance at around $63,000 could limit further upside over the short term.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
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. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/www.coindesk.com/resizer/XTMlnvzxCMnzHK_npTPd1O1pxuk=/arc-photo-coindesk/arc2-prod/public/AYI2A2FHEBFJJNFJQRYJ7H4BGA.png)
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.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.