Bitcoin Eases After Rejection at $58.5K, Support at $54K

Bitcoin looks heavy on short-duration technical charts after it failed to keep gains above $58,000 early Thursday. The cryptocurrency was trading near $57,350 at press time.

• On the chart above, the relative strength index (RSI) has decoupled from the rising price since Oct. 6. The indicator’s negative divergence suggests a loss of upward momentum and scope for a pullback.
• The immediate support is seen at $54,000, a level where buyers have consistently stepped in over the past week. A drop below there would allow for a slide to $50,000.
• Progress above daily highs near $58,500 is needed to negate RSI’s bearish divergence and open the doors for new record highs above $64,801.