Bitcoin holds support, faces resistance around $58k-$60k

BTC buyers continue to take profit on recoveries with resistance around $58K.

Bitcoin (BTC) held support around $54,000 after buyers took profit around the $58,000 resistance level on Thursday. The cryptocurrency was trading around $56,500 at the time of writing.

While the short-term trend is improving, traders have been quick to take profit on rallies. Slowing momentum is typical of a consolidation phase, which suggests traders are taking a breather following a near two-fold price increase in BTC over the past year.

• Bitcoin remains above the 100-period moving average on the four-hour chart and daily chart. This indicates an improving short-term trend, albeit with resistance around $58,000.
• BTC has retraced about 50% of the April 14 sell-off from an all-time high around $64,900.
• The relative strength index (RSI) is neutral across short-term charts and has receded from extreme overbought levels on the long-term weekly chart.
• Initial support is seen around $54,000 and then $52,000 which has limited profit taking over the past week.