First Mover: Bitcoin Chart Indicator Suggests Worst of Pullback May Be Over
  Everything you need to make sense of the crypto markets and beyond By the CoinDesk Markets Team Edited by Bradley Keoun, Managing Editor, Markets May 18, 2021 Sponsored by  (Price data as of May 18 @11:00 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.
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Market Moves by Omkar Godbole  Bitcoin Chart Indicator Suggests Worst of Pullback May Be Over Bitcoin's bull market correction may be coming to an end, according to the relative strength index (RSI) – a technical indicator widely used to gauge momentum and identify overbought and oversold conditions.
The 14-week RSI has now dropped to 53.00, a level that has consistently acted as solid support and marked an end of corrective pullbacks during the 2016-2017 bull run.
The RSI support has come into play as bitcoin (BTC, +1.56%) charted a 35% drop from $64,801 to $42,000 in the past four weeks. While Twitter comments from Tesla CEO Elon Musk look to have scared some retail investors into selling, there were already signs of exhaustion in the market. Whales had started moving money out of bitcoin, leaving less wealthy investors struggling to do the heavy lifting above $60,000.
However, the bull market looks intact, with the cryptocurrency still up 365% year-on-year and evidence of long-term investors buying the dip. Coupled with the weekly RSI hovering at historically strong support, that suggests the cryptocurrency may soon resume its uptrend.
Bitcoin is showing signs of life at press time, trading 4% higher on the day at $45,300, according to CoinDesk 20 data.  Bitcoin weekly price chart. (TradingView) As shown above, bitcoin saw at least four significant corrections during the 2016-2017 bull run that ended with the weekly RSI near 53.00.
The make-or-break level was finally breached in January 2018, marking bitcoin's entry into a bear market. What followed was almost a year-long sell-off to as low as $3,200.
Since then, crossovers above and below 53.00 have served as reliable indicators of bullish/bearish trend changes. The RSI moved above 53.00 in April 2019 and April 2020, kicking off major price rallies. Meanwhile, drops below the level in September 2019 and February 2020 brought significant losses. Read the original story here: Bitcoin Chart Indicator Suggests Worst of Pullback May Be Over
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Technician's Take by Damanick Dantes Bitcoin Stabilizes at Support; Faces Resistance Around $50K-$53K Bitcoin (BTC) buyers continued to defend support around $42,000 on Monday. The sell-off that began last week appears to be weakening as the cryptocurrency registers oversold signals. However, upside appears limited towards $50,000-$53,000 resistance.
The cryptocurrency was trading around $45,000 at the time of writing.  Daily bitcoin chart shows support and resistance levels with oversold RSI. (Trading View)
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ICYMI In case you missed it, here's the most recent episode of "First Mover" on CoinDesk TV:
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