Bitcoin Holds Support, Testing $50K Resistance
Short-term overbought signals could trigger a brief pullback.
Updated May 11, 2023 at 4:29 p.m. UTC
![Bitcoin four-hour chart shows short-term support and resistance levels with RSI. Bitcoin four-hour chart (CoinDesk, TradingView)](https://www.coindesk.com/resizer/EJnPbe6K9i54QZfn4HnYwbawU7A=/567x318/filters:quality(80):format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/CXGM4JNOQJA2BPVFZASA5OD5KQ.png)
Bitcoin (BTC) buyers were active during Asian trading hours as they defended support at around the 200-day moving average. The cryptocurrency is testing initial resistance of around $50,000 and is up about 5% over the past 24 hours. A breakout above current levels could yield further upside toward $55,000.
- The relative strength index (RSI) on the four-hour chart is approaching overbought territory, which typically precedes brief pullbacks similar to what happened on Aug. 23 when buyers failed to break above $50,000 resistance.
- Initial support is seen at the 100-period moving average on the four-hour chart of about $47,800, which could stabilize a pullback.
- Upside momentum has faded over the past few weeks, although buyers will likely defend lower support as bitcoin consolidates.