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Bitcoin Holds Support; Faces Resistance at $50K
BTC remains in a consolidation phase after failing to sustain moves above $64,000.
Updated Mar 6, 2023, 2:57 p.m. Published May 17, 2021, 11:30 a.m.
Bitcoin (BTC) continued to slide over the weekend and is now down about 20% for the month to date. The cryptocurrency approached initial support around $42,000 which could stabilize the sell-off. Price recoveries remain limited, evidenced by several months of slowing momentum, suggesting that sellers remain in control.
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Bitcoin is trading around $44,800 at the time of writing.
- The relative strength index (RSI) on the daily chart is now oversold similar to April 25, which preceded a near 20% price recovery.
- Bitcoin is below the 100-day moving average, which is now resistance at $54,000. However, BTC will likely face immediate resistance at the $50,000 level as the uptrend weakens.
- If initial support at $42,000 is broken, the next level of support is seen around $34,286, which is roughly a 50% retracement of the March 2020 low.
- Bitcoin remains in a consolidation phase after failing to sustain moves above $64,000. An intermediate term bullish to bearish trend reversal is on watch, especially as sell signals appear on the weekly chart.
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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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