- 20th August 2021
- Posted by: Hakeem
- Category: Crypto
Bitcoin (BTC) rose about 6% over the past 24 hours as buyers defended support at the 200-day moving average around $45,000. The cryptocurrency was trading around $47,200 at press time and faces initial resistance near $50,000.
The breakout above $42,000 earlier this month stalled as short-term overbought conditions appeared on the charts. Buyers will likely remain active on pullbacks into the weekend.
Bitcoin daily price chart shows support and resistance levels with RSI
The relative strength index (RSI) on the daily chart is declining from overbought levels. The slight divergence between RSI and bitcoin’s price preceded a brief pullback towards the $42,000 breakout level.
The weekly RSI is neutral, although momentum has significantly improved over the past two months.
Initial signs of upside exhaustion appeared on the charts last week, which is typically seen as warning sign for higher volatility.