Bitcoin Consolidates Near Support Although Faces Resistance at 48k-50k

Bitcoin Consolidates Near Support Although Faces Resistance at 48k-50k

Finally, a sign of relief for investors as bitcoin stabilizes itself after a crazy ride. With El Salvador purchasing over $20 million in Bitcoin and becoming the first nation to adopt it as legal money, bitcoin dropped from $52,000 only one week ago on Monday, September 6.

With more and more individuals wanting to join in on the action, Bitcoin’s recent volatility was highlighted. Since the July low, Bitcoin has gradually climbed, reaching daily highs over $50,000 on numerous occasions. Bitcoin is very volatile, and it is a part of the course.

Bitcoin is trading in a tight range as buyers recover from last week’s losses. However, resistance is highly anticipated around $50,000, which may encourage short-term buying. Bitcoin (BTC) is up approximately 3% in the last 24 hours following a rough week. Short-term gains, limited by resistance around $48,000-50,000.

Short-Term Momentum Improves

As the negative impetus fades, buyers defend the 200-day moving average of around $45,000. Last week’s sell-off, foreshadowed by the relative strength index (RSI) reaching overbought levels.

On the daily chart, the RSI is rising from neutral, which may keep buyers active at around $50,000. As short-term momentum improves, Bitcoin (BTC) continues to stabilize over $45,000. According to CoinMarketCap, the cryptocurrency was trading at $47,889.89, close to the 200-day MA.

Rebounding buyers seem to be limiting short-term gains to $48,000- $50,000. The four-hour RSI, risen from oversold levels last week, not yet overbought. This may trigger a price spike.

On the four-hour chart, Bitcoin is still below the 100-period moving average, rejected last week. BTC is expected to stabilize around present support, although volatility is highly likely.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.