Bitcoin Consolidates Below $56K Resistance as Buyers Lose Strength

BTC has remained in a consolidation phase since February.

Bitcoin (BTC) is holding short-term support and was trading around $54,000 at press time. The cryptocurrency is now below the 50-day moving average as upside momentum continues to slow. Buyers will need to defend support around $51,000 to stabilize the long-term uptrend.

  • The relative strength index (RSI) on the daily chart has made a series of lower highs this year, which reflects slowing upside momentum.
  • BTC has remained in a consolidation phase since February as buyers were quick to take profit around the $60,000 resistance zone.
  • The daily RSI is approaching oversold territory, which will likely occur as price continues to drift below the 50-day moving average.
  • Lower support is around $42,000 similar to February 28, which preceded a price rally.
Daily BTC chart shows support and resistance levels with 14-period RSI.
Source: TradingView

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