Bitcoin price started a downward correction from the $50,400 zone. BTC tested USD 48,250 and is currently attempting another increase above USD 50,000.
- Bitcoin price is holding gains above the USD 48,250 and USD 48,500 support levels.
- The price is trading above USD 48,850 and the 100 hourly Simple Moving Average.
- A major bullish trendline is forming with support at $48,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to rise if it breaks the $50,000 resistance zone.
Bitcoin price remains supported
Bitcoin price quickly rose above the USD 48,800 resistance zone. BTC even spiked above the $50,000 resistance zone before the bears appeared. A new multi-week high was formed near $50,339 before the price corrected lower.
There was a move below the USD 49,500 and USD 49,200 levels. The price even dipped below $49,000, but the bulls were active above the $48,250 support. A low was formed near $48,240 and the price is now heading higher. There was a move above the $48,800 zone.
Bitcoin has crossed the 50% Fib retracement level from the recent decline from the $50,390 swing high to the $48,240 low. It is now trading above USD 48,850 and the 100 hourly Simple Moving Average.
A major bullish trendline is also forming with support at $48,750 on the hourly chart of the BTC/USD pair. Immediate resistance is near the $49,880 level or the 76.4% Fib retracement level of the recent decline from the $50,390 swing high to the $48,240 low.
Source: BTCUSD on TradingView.com
The next major resistance could be at USD 50,000, above which the price could stage another decent rise. The next stop for the bulls could be as high as $50,400. A clear move above the USD 50,400 resistance could send the price towards the USD 51,200 resistance. The next resistance could be near the USD 52,000 level.
Another drop in BTC?
If Bitcoin fails to rise above the $50,000 resistance zone, it could trigger another downside correction. The immediate downside support is near the $49,200 level.
The first major support is $48,800 and the trendline. If there is a close below $48,800, the price may gain bearish momentum. In the said case, the price could dive towards the support at $47,800.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 49,000, followed by USD 48,750.
Major resistance levels – $50,000, $50,400 and $51,200.
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