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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.
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.