Bitcoin stabilizes at support, faces resistance around 50k-53k

Bitcoin (BTC) buyers continued to defend support around $42,000 on Monday. The sell-off that began last week appears to be weakening as the cryptocurrency registers oversold signals. However, upside appears limited towards $50,000-$53,000 resistance.

The cryptocurrency was trading around $45,000 at the time of writing.

• The relative strength index (RSI) on the four-hour chart is now oversold similar to the last week in April which preceded a price bounce.

• The RSI is also oversold on the daily chart and is neutral on the weekly chart, which could signal a brief price recovery as sellers capitulate.

• Initial resistance is around $50,000 and then at the 100-period moving average on the four-hour chart at $53,000.

• Bitcoin continues to consolidate and is now at the bottom of a three-month range. The broader uptrend remains intact, albeit vulnerable to sharp swings and frequent drawdowns.

Four-hour bitcoin chart shows support and resistance levels with oversold RSI.
Source: TradingView