The Bitcoin (BTC) price is still rising, at around $56,000. However, the rally appears exhausted due to overbought signals. The cryptocurrency is up around 14% over the past week. However, it faces resistance somewhere between $58,000-60,000.
- The relative strength indicator (RSI), on the four-hour chart, is falling from last week’s extreme. A negative divergence of the RSI with price usually leads to a short pullback, much like what occurred in mid-September.
- The RSI of the daily chart is close to overbought levels. This suggests that buyers might exit positions at upper resistance levels.
- Momentum has been improving over the past 2 weeks. This means that pullbacks might be limited towards initial support at $50,000.