BTCUSD Extremely overbought

Bitcoin has staged a pullback towards the $55,800 region after finding strong technical resistance around the $58,300 level over the weekend. The RSI indicator on the daily time frame is extremely overbought, meaning that the BTCUSD pair could be due for a correction. Sustained weakness below the $55,000 level could trigger a further correction back towards the $50,000 price area.

• The BTCUSD pair is only bullish while trading above the $55,000 level, key resistance is found at the $57,500 and the $58,300 levels.

• If the BTCUSD pair trades below the $55,000 level, sellers may test the $52,000 and $50,000 levels.