Bitcoin holding support: Stuck below $50K resistance

August 30, 2021

Upside appears to be limited towards $50,000-$55,000, given signs of slowing momentum and strong overhead resistance.

Bitcoin (BTC, -0.68%) is consolidating after buyers took profits near the $50,000 resistance level last week. The cryptocurrency is holding support around $48,000 and is down 3% over the past seven days.

The breakout above $42,000 and $46,000 could keep buyers active at support, which should relieve some upside exhaustion signals on the charts.

fxsoriginal

 

  • Bitcoin is holding the 100-period moving average on the four-hour chart, which consistently provided support on pullbacks over the past week.
  • However, upside appears to be limited towards $50,000-$55,000, given signs of slowing momentum and strong overhead resistance.
  • The relative strength index (RSI) is declining from overbought levels on both the four-hour and daily chart. This typically reflects a healthy consolidation after a series of price breakouts.