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.