Bitcoin [BTC] is roughly 16% higher of the weekend low around $47k as buyers skilled oversold conditions. The cryptocurrency is presently trading around $54,899 USD at the time of reporting. The subsequent level of resistance, for now, is at $56k.
The RSI [Relative Strength Index] on the hourly chart is now the foremost overbought since the 14th of April when BTC reached an all-time high of around $64,800 USD.
Bitcoin is approaching resistance around $56k which is roughly a 50% retracement of the prior two-week downtrend.
Primary support on the hourly chart is at the 50-period volume-weighted moving average of around $51,800 USD.
The weekly RSI reveals considerable loss of upside momentum almost like June 2019 which preceded a corrective phase. For now, short-term oversold conditions should support brief price recoveries, albeit susceptible to sharp swings.
“Bitcoin’s corrective phase should run its course within 2-3 months. Support is near $42k as a gauge of downside risk within the long-term uptrend,” wrote Katie Stockton of Fairlead Strategies who also points to sell signals on the weekly Bitcoin chart.