Bitcoin (BTC) failed to break above resistance around $58,000 on Tuesday. The cryptocurrency is trading around $56,200 at the time of writing. Buyers could return around the $55,000 support level which held during the weekend sell-off.
- The relative strength index (RSI) on the hourly chart registered an overbought signal on Tuesday. The RSI is not yet oversold which could keep sellers active towards lower support levels.
- Bitcoin is now below the 100-period moving average on the hourly chart as the short-term trend weakens.
- Stronger support is around $53,000 which has limited price declines over the past two weeks.
- Long-term momentum is deteriorating as buyers continue to take profit on rallies.