Bitcoin Testing Key support: A Dip Buying opportunity?
- BTC is trading around $51,744 after hitting a recent high of $52,007. This suggests upside momentum may be slowing as prices approach resistance.
- On the daily chart, the RSI is nearing overbought levels above 70. This could signal Bitcoin is due for a short-term pullback to establish support and refresh overbought conditions.
- Key support levels to watch on any declines are the 10-day moving average currently near $51,000 and the 20-day SMA at $50,500.
- If prices hold above these, it would keep the current uptrend intact over the short to medium-term.
- However, a daily close below the 20-day SMA could open the door for a deeper 5-7% correction back to the $48,000-$49,000 area.
In the near-term, traders may look to take profits on long positions given overstretched bullish indicators. Support watchers are likely the best approach, with potential buys on a dip down to established moving averages.
- On the daily chart, the RSI is nearing overbought levels above 70. This could signal Bitcoin is due for a short-term pullback to establish support and refresh overbought conditions.
- Key support levels to watch on any declines are the 10-day moving average currently near $51,000 and the 20-day SMA at $50,500.
- If prices hold above these, it would keep the current uptrend intact over the short to medium-term.
- However, a daily close below the 20-day SMA could open the door for a deeper 5-7% correction back to the $48,000-$49,000 area.
In the near-term, traders may look to take profits on long positions given overstretched bullish indicators. Support watchers are likely the best approach, with potential buys on a dip down to established moving averages.