Pullbacks could be limited given strong upside momentum.
Bitcoin (BTC) continues to strengthen after breaking above $50,000 earlier this week and rallying Thursday to a five-month high.
The cryptocurrency was trading around $54,000 at press time and is up 5% over the past 24 hours. Overbought signals suggest risk of a pullback, albeit limited to support around $50,000-$52,000.
The intermediate-term uptrend has improved over the past few months, which could keep buyers active toward the all-time high near $64,000.
- The relative strength index (RSI) is the most overbought since September, which preceded a correction. However, a similar downturn is unlikely given strong upside momentum and a series of breakouts on the charts.
- Buyers will need to hold support above $48,000-$50,000 in order to resume the recent rally.
- BTC is not yet overbought on the weekly chart, which points to further upside.