Bitcoin Approaches Resistance Near $50K-$55K

Bitcoin (BTC) buyers were active over the weekend and defended support near the 200-day moving average at $45,000. The cryptocurrency was trading around $50,000 at press time and is will likely face resistance towards $55,000.

The short-squeeze rally has lasted for about a month as bitcoin held $30,000 support and broke out of a consolidation phase above $42,000. BTC is up about 46% over the past 30 days despite recent signs of upside exhaustion.

• The relative strength index (RSI) is near overbought levels on the daily chart, which could encourage profit taking around resistance.
• Pullbacks should be brief given initial support near $45,000.
• Upside momentum is strengthening on daily and weekly charts, which suggests buyers are in control.