In an attempt to break above a series of lower price highs and sell-off from April 14, Bitcoin is stabilizing the short-term downtrend. The cryptocurrency is holding support above $50K after reaching the oversold levels last week.
Bitcoin Stabilizes After Weekend Sell-off Triggering Resistance Around $58K
At the time of writing this article, Bitcoin was trading around the level of $53K, and the next level of resistance is approximately 8% higher around $58K.
BTC had around 5% sell-off around $47K on April 25, although purchasers were quick to settle prices back above the $50K mark.
The RSI, relative strength index on the four-hour chart recorded an oversold reading on April 17 and made a higher low on April 23. This bull run divergence could manage to keep the purchasers active towards the next resistance level around $56K-$58K.
BTC held support at the moving average of 100 days after the RSI reached oversold levels for the very first time since the month of September of the year 2020.
The weekly RSI is still retreating from extreme overbought levels.
There is a key contracting triangle forming with the resistance near $54K on the per-hour chart of the BTC/USD pair.
BTC Price Gaining Pace
In accordance with the data released by Glassnode data, the SOPR indicator, which measures percentage net profit/loss could signal a market low of Bitcoin.
A blockchain data metric, SOPR, which stands for spent output profit ratio, that measures the net profit/loss position of outstanding BTC had approached levels that typically precede price runs.
Glassnode data revealed:
“It would be irrational to sell at a loss when gains are imminent.”
In an analysis published in the newsletter Pomp Letter on April 23, Will Clemente of Bitcoin Magazine Research wrote that it is:
“Relatively rare to see the aggregate of market participants to take losses in a bull market except during significant corrections.”