Market moves: Bitcoin remains around $57,000 a day before the U.S. Thanksgiving holiday while tether’s discount to the Chinese yuan mostly recovers from the extended shock of China’s September crypto trading ban.
Technician’s take: Initial signs of downside exhaustion could stabilize the intermediate-term uptrend from July. Volatility expected to rise.
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Bitcoin spent most of Wednesday trading below $57,000 with low trading volume, as the U.S. enters the Thanksgiving holiday. Ether dropped below $4,300, a more than 2% decline.
Bitcoin (BTC) is holding support above its 100-day moving average, which is currently at $53,700. The cryptocurrency was trading around $57,000 at press time and could see further upside toward the $60,000 resistance level over the short term.
The relative strength index (RSI) on the daily chart is almost oversold, similar to what occurred in late-July and September, which preceded near-50% price rallies. Still, buyers will need to break above the $60,000-$65,000 resistance zone in order to yield upside price targets.
Price momentum is slowing on the daily chart, although initial signs of downside exhaustion could stabilize the intermediate-term uptrend from July. Volatility will likely return into the U.S. Thanksgiving holiday, which could lead to sharp price movements over the weekend.