Bitcoin returns near $50K, next resistance at $55K
Bitcoin (BTC) buyers are making another attempt at the $50,000 resistance level. A breakout would yield further upside towards $55,000 as momentum improves. Lower support is seen at the 200-day moving average around $46,000.
The short-squeeze rally that began in July has been well supported on pullbacks. Signs of upside exhaustion and overbought signals led to a weeklong consolidation phase, which could resolve to the upside.
Bitcoin was trading around $49,600 at press time and is up 2% over the past week.
Bitcoin daily price chart (CoinDesk, TradingView)
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The relative strength index (RSI) on the daily chart is declining from overbought levels and should stabilize around the neutral mark at 50.
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Bitcoin is trading above the upward sloping 50-day and 200-day moving averages, signaling improving trend strength after a sharp correction earlier this year.
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Bulls could remain active into the weekend, albeit limited towards $55,000 resistance over the short-term.
Author
CoinDesk Analysis Team
CoinDesk
CoinDesk is the media platform for the next generation of investors exploring how cryptocurrencies and digital assets are contributing to the evolution of the global financial system.
