Bitcoin rallied above $45,000 as upside momentum improved over the past two weeks. The next level of resistance is seen at a price of $50,000, which could limit further upside given short-term overbought signals. Bitcoin price is up about 2% over the past 24 hours – around $45,600 at press time and holding support above $40,000.

Bitcoin holds support, next resistance at $50K

The relative strength index on the daily chart is overbought for the second time since July 31, which preceded a near 10% price decline.

However, the weekly RSI is rising from neutral levels with a positive price momentum signal for the first time since October 2020, which reignited the long-term uptrend.

Buyers could remain active on pullbacks this week as bitcoin BTC cleared important technical levels such as the 100-day moving average.

As per Elliott Wave analysis, the BTCUSD pair is making a bigger recovery, but we still see it as part of an (A)-(B)-(C) flat price correction within higher degree wave B, where wave (C) could have completed five-wave cycle.

So, keep an eye on the projected resistance level here in the 45k-47k, where bears for higher degree wave C may show up again.

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