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Bitcoin Trading Within A Tight Spot – Support Level Over $55k.

Bitcoin [BTC] has traded within a tight spot over the past 2-days after rallying nearly 18% from the 25th April low around $47k. The cryptocurrency was trading around immediate support at $54,700 USD at the time of reporting and has nearly retraced 50% of the prior two-week downtrend. Lower support is around $52k.

BTC stalled slightly below $56k resistance after the RSI [Relative Strength Index] reached overbought levels on intraday charts.

Lower highs on the hourly RSI outline a slowing upside momentum after the 18% price rally. Typically slowing momentum suggests profit-taking as buyers look to determine positions at lower support levels.

Bitcoin [BTC] is trading just over the 50-period volume-weighted moving average on the hourly chart, which might also offer immediate short-term support.

BTC will need to return above $56k to sustain the recovery from last week’s sell-off.

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