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Bitcoin Stabilizes After Sell-Off; Faces Resistance Near $53K
BTC 's price recovery could be limited into the weekend.
Updated Mar 6, 2023, 3:34 p.m. Published May 14, 2021, 11:31 a.m.
Bitcoin (BTC) is rising from oversold levels as traders continue to digest Tesla’s announcement on Wednesday, which triggered a near 15% price drop. The cryptocurrency held support around $46,000 and is currently trading back above $50,000 at the time of writing.
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However, long-term momentum continues to weaken, which could limit price recoveries this weekend and into next week.
- Bitcoin remains in a consolidation phase with frequent drawdowns, which was in effect for several months before the Tesla announcement that it has ended its cars-for-bitcoin program because of environmental concerns.
- The relative strength index (RSI) on the four-hour chart registered an oversold signal on Thursday, which could keep buyers active towards $53,000-$54,000.
- On the daily chart, the RSI is not yet oversold. Meanwhile, the weekly RSI has receded from extreme overbought levels and is now neutral. This means stronger support around $42,000 should not be ruled out.
- Additionally, bitcoin on May 10 made a lower price high on the daily chart around $59,000, which suggests the short-term trend is weakening.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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