Upside momentum is slowing, although pullbacks could be limited into Asian trading hours.
Bitcoin (BTC) buyers are exiting positions as overbought signals appear on the charts. Resistance is seen at around $58,000-$60,000, the level that preceded a price drop in May. This time, however, pullbacks could be limited toward the $50,00-$52,000 support zone.
BTC was trading at around $55,600 at press time and is down 3% over the past 24 hours.
- The relative strength index (RSI) on the four-hour chart is declining from overbought levels last week, which suggests the current pullback could extend into Asian trading hours.
- The RSI is also overbought on the daily chart similar to early September before a price correction occurred.
- For now, immediate support is seen at the 50-period moving average on the four-hour chart, which is at $54,000. Short-term volatility could remain elevated as indicators show a stalemate between buyers and sellers.