Bitcoin price extended its rally above the USD 48,800 resistance. BTC tested $50,000 and is currently showing signs of a downward correction.
- Bitcoin price climbed higher above the USD 48,500 and USD 48,800 resistance levels.
- The price is trading above USD 48,800 and the 100 hourly Simple Moving Average.
- A short-term ascending channel is forming with support at $49,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a downward correction below the USD 49,750 and USD 49,500 levels.
Bitcoin Price Rises 5%
Bitcoin price remained in a positive zone above the USD 48,000 resistance zone. BTC extended its rally and climbed above the USD 48,800 resistance zone. Ultimately, the price jumped above the $50,000 level.
A new multi-week high was formed near $50,339 and the price is now consolidating gains. There was a small decline below the $50,000 level. The price is still above the 23.6% Fib retracement level from the recent rally from the $47,642 swing low to the $50,339 high.
Bitcoin price is now trading above $48,800 and the 100 hourly Simple Moving Average. A short-term ascending channel is also forming with support at $49,750 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The immediate resistance is near the USD 50,250 level. The next major resistance could be at USD 50,400, above which the price could stage another decent rise. The next stop for the bulls could be as high as $51,200. A clear move above the USD 51,200 resistance could send the price towards the USD 52,000 resistance. The next resistance could be near the USD 53,000 level.
Downward correction in BTC?
If Bitcoin fails to rise above the USD 50,250 resistance zone, a downward correction could occur. The immediate downside support is near the $49,750 level or channel trendline.
The first major support is $49,000 and the 50% Fib retracement level from the recent rally from the $47,642 swing low to the $50,339 high. If there is a close below $49,000, the price may gain bearish momentum. In the said case, the price could dive towards the support at $47,650.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 49,750, followed by USD 49,000.
Major resistance levels – $50,250, $50,400 and $51,200.
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