Bitcoin looks oversold after a brief bullish rally

BTC’s bailout comes temporarily after major central banks announced plans to fight high inflation. Although sellers remain in control, the leading cryptocurrency could see a brief rally. At the time of writing, Bitcoin price is changing hands at $ 48,003.

BTC / USD 4-hour chart | Source: TradingView

Oversold Bitcoin price near $ 46,000 support resistance at $ 55,000

Bitcoin Relief Rally, like Bitcoin news reported after Federal Reserve officials approved an accelerated plan to withdraw from pandemic efforts that appeared to have been short-lived as the leading cryptocurrency fell less than $ 48,000. Currently, BTC appears to be oversold and has fallen about 2% in the past 24 hours.

Price momentum is starting to turn positive on the daily chart for the first time since October before the price rallies. Even so, it still holds support above $ 46,000, near its 200-day moving average. The cryptocurrency could see a brief rally towards $ 55,000 if buyers respond to the oversold signals on the chart. This time, however, the uptrend is slowing down on the weekly chart, which means the uptrend above $ 55,000 could be capped to $ 60,000.

The daily chart’s Relative Strength Index (RSI) has been the best-selling since late September, although buying is weak relative to previous RSI signals.

However, the number of whales is still increasing, suggesting an accumulation. “The number of Bitcoin whale addresses holding between 100 and 1,000 BTC has added 193 addresses to this prestigious club compared to ten weeks ago. The number of whales in this tier has shown some particularly notable similarities with the price of BTC in the past, ”Santiment said.

The source: mood

The altcoin market also declined. ETH fell below $ 4,000 again. The cryptocurrency is down about 4% in the last month, compared to BTC’s 20% decline. ETH has support around its 100-day moving average (currently at $ 3,900) which could stabilize a pullback in the short term. The daily chart’s Relative Strength Index (RSI) is also the most oversold since the end of September before a bull run. However, similar to Bitcoin, upside momentum appears to be limited around an all-time high of $ 4,800.

And yesterday’s biggest winners, including Solana (SOL) and Avalanche (AVAX), were also in the red at the time of going to press. The total crypto market cap is $ 2.221 trillion and the bitcoin dominance is 40.8%.