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.