The sell-off is stabilizing, leaving BTC down about 7% over the past week. Buyers will need to defend support above the $42,000 breakout level to resume the relief rally from July.
The relative strength index (RSI) on the daily chart continues to decline from overbought levels over the past month.
The current neutral reading on the RSI is similar to June and July, which occurred during consolidation phase.
Resistance remains strong between $50,000 and $55,000 as the near 70% price rally from $30,000 in July appears to be exhausted.
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