Bitcoin (BTC) appears to be oversold, which could support a brief rise toward the $60,000-$63,000 resistance zone.
The cryptocurrency held short-term support around $56,000 as selling pressure stabilized.
The relative strength index (RSI) is rising from oversold levels, similar to Oct. 27, which preceded a price recovery. On the daily chart, the RSI is approaching oversold levels for the first time since late-September.
Further, bitcoin’s correction from an all-time high near $69,000 appears to be exhausted, which could encourage buyers to return. Momentum is improving into the Asian trading day, although resistance around $63,000 could limit further upside over the short-term.
