Pullbacks appear to be limited given breakouts on the charts.
Bitcoin (BTC) is declining after testing resistance near $52,000 on Monday. Initial support is seen at the $50,000 breakout level where buyers displayed strength last week. The cryptocurrency is trading around $51,000 at press time and is up about 8% over the past week.
- The upward sloping 100-period moving average on the four-hour chart could stabilize the short-term pullback above $49,000.
- The relative strength index (RSI) on the four-hour chart is declining from overbought levels, which preceded profit taking during Asian hours.
- The RSI continues to diverge from bitcoin’s rally over the past month, signaling slowing upside momentum. However, pullbacks appear to be limited given multiple breakouts on the charts.