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Bitcoin Holds Support Above $44K; Resistance at $48K-$51K

Bitcoin (BTC) upside momentum signals remain intact after a bounce off $44K support. The cryptocurrency faces resistance at $48K and $51K, which could stall the rally, although some short-term indicators are neutral.Read MoreFeedzy

Bitcoin (BTC) bounced off short-term support at $44,000 as momentum improved.

The cryptocurrency is up 5% over the past week, although resistance at $48,000 and $50,996 could stall the rally, similar to what occurred in September of last year.

This time, however, pullbacks could be brief, so long as buyers defend support above $43,000-$45,000. Further, the significant loss of downside momentum, per the MACD indicator, over the past few weeks could encourage additional buying on price dips.

The relative strength index (RSI) on the daily chart is approaching neutral territory after an overbought reading appeared on March 28. That suggests a pause in the current price rally, which typically occurs during the beginning of the month.

For now, BTC is testing support around its previous breakout point at $45,000. Upside exhaustion signals, per the DeMARK indicators provided a timely countertrend reversal set-up earlier this week, although a continuation of that sell signal has not been confirmed. That means price action is currently neutral, pending a decisive break above or below the five-day price range.

DISCLOSURE

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