Bitcoin Stabilizes After Weekend Selloff; Resistance Around $59K

The near 15% price drop in bitcoin (BTC) over the weekend triggered oversold readings on intraday charts. Buyers were able to maintain short-term support around $55,000, although there is strong resistance around $58,000-$59,000.

  • BTC’s April 13 breakout above $60,000 and subsequent all-time high failed. Slowing upside momentum on daily and weekly chart indicates continued profit taking on rallies.   
  • The last 15% price drop occurred on March 21, which fully recovered and then consolidated for several weeks.
  • The relative strength index (RSI) is now oversold on the four-hour chart, which typically leads to price recoveries similar to April 8 and March 25.
  • On the daily chart, BTC is holding support just above its 200-day moving average. If selling pressure returns, the next level of support is around $50,000 and then $42,000.  



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