- BTCUSD moves sideways after steep advance pauses
- Holds comfortably above 50,000 psychological mark
- Momentum indicators look overbought
BTCUSD (Bitcoin) had been in a steep advance following its break above the 50-day simple moving average (SMA) on February 7. However, the rally seems to have paused for now, with the price consolidating a tad below its more than two-year peak of 52,989.
If Bitcoin storms to fresh highs, the November 2021 support zones of 53,300 and 55,500 could now provide initial resistance. Conquering the latter, the bulls might attack 59,440, which served as both support and resistance in the November-December 2021 period. Even higher, the December 2021 resistance of 64,300 might curb further upside attempts.
On the flipside, should the tight range break to the downside, the previous peaks of 49,051 and 44,785 could act as the first lines of defence. A violation of the latter could open the door for the inside swing low of 41,420. Failing to halt there, the price may slide towards the 2024 bottom of 38,460.
In brief, BTCUSD appears to be in a consolidation phase, waiting for developments that could provide fresh directional impetus. That being said, the momentum indicators remain in their overbought zones, increasing the odds for an impending pullback.
