Bitcoin price is struggling to break the USD 52,000 resistance. BTC could start a significant downside correction if it breaks the USD 50,500 support zone.
- Bitcoin price is still struggling to break the USD 52,000 resistance zone.
- The price is trading below $51,600 and the 100 hourly Simple Moving Average.
- There was a break below a connecting bullish trendline with support at $51,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue the current decline and revisit the $50,500 support.
Bitcoin price faces resistance at $52K
Bitcoin price retested the USD 50,500 support zone and even spiked towards USD 50,400. However, the bulls were active around $50,450. A low was formed at $50,456 and the price recovered above $51,200.
The bears are now protecting an upside break above the $52,000 resistance zone. A high is formed at $51,936 and the price is now heading lower. There was a break below a connecting bullish trendline with support at $51,500 on the hourly chart of the BTC/USD pair.
There was a break below the 23.6% Fib retracement level of the upward move from the $50,456 swing low to the $51,936 high. Bitcoin is now trading below $51,600 and the 100 hourly Simple Moving Average.
Source: BTCUSD on TradingView.com
The immediate resistance is near the $51,600 level. The next major resistance could be at USD 52,000, above which the price could rise towards the USD 52,500 resistance zone. The main resistance is now near the USD 53,000 level. A clear move above the USD 53,000 resistance could send the price towards the USD 53,500 resistance. The next resistance could be near the $54,200 level.
Another drop in BTC?
If Bitcoin fails to rise above the USD 51,600 resistance zone, it could trigger another decline in the near term. Immediate support on the downside is near the $51,300 level and the 100 hourly SMA.
The first major support is $51,100 or the 50% Fib retracement level of the upward move from the $50,456 swing low to the $51,936 high. If there is a close below $51,100, the price could see a significant pullback. In the said case, the price could decline towards the USD 50,500 support zone, below which the price could even test USD 50,000.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 51,100, followed by USD 50,500.
Major resistance levels – $51,600, $51,800 and $52,000.
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