Bitcoin Stabilizes After Sell-Off; Faces Resistance Near $53K

BTC held support as traders digest the Tesla announcement. Price recoveries could be limited into the weekend.

Bitcoin remains in a consolidation phase with frequent drawdowns, which was in effect for several months before the Tesla announcement.The relative strength index (RSI) on the four-hour chart registered an oversold signal on Thursday, which could keep buyers active towards $53,000-$54,000.On the daily chart, the RSI is not yet oversold. Meanwhile, the weekly RSI has receded from extreme overbought levels and is now neutral. This means stronger support around $42,000 should not be ruled out. Additionally, bitcoin on May 10 made a lower price high on the daily chart around $59,000, which suggests the short-term trend is weakening.

Four-hour bitcoin chart shows support and resistance levels with RSI.

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