Bitcoin was unable to test the $ 50,000 resistance against the US Dollar. BTC is correcting gains, but declines could be capped below the $ 47,500 support.
- Bitcoin struggled to break above the $ 49,500 resistance zone and corrected lower.
- The price is trading above $ 48,000 and the 100 hourly simple moving average.
- There was a break below a key ascending channel with support near $ 49,000 on the hourly chart of the BTC / USD pair (data feed from Kraken).
- The pair could start a new rally if it sustains above the $ 47,500 support zone.
Bitcoin price is still supported
The price of Bitcoin formed a base and started a new surge above the $ 47,500 level. BTC gained pace to move above the $ 48,500 level and the 100 hourly simple moving average.
The bullish move was such that the price even spiked above the $ 49,200 resistance. However, the bulls failed to propel the price towards the $ 50,000 level. A high was formed near $ 49,599 and the price initiated a downward correction.
There was a break below the $ 49,000 level. Additionally, there was a break below a key ascending channel with support near $ 49,000 on the hourly chart of the BTC / USD pair.
The pair traded below the 23.6% Fib retracement level of the up move from the $ 45,600 low to $ 45,599 high. Bitcoin tested the $ 48,000 zone and is currently rising. It is facing resistance near the $ 48,800 zone.
Source: BTCUSD on TradingView.com
The next key resistance could be $ 49,200. The main breakout zone is now near $ 49,500. A clear move above the $ 49,500 resistance zone could lift market sentiment for a move above $ 50,000. The next major stop for the bulls is likely near the $ 51,200 level.
Limited dips in BTC?
If bitcoin fails to clear the $ 49,500 resistance zone, it could extend its decline. An immediate support to the downside is near the $ 48,000 level.
The first major support is near $ 47,500. It is close to 50% of the Fibonacci retracement level of the up move from the $ 45,600 low to $ 45,599 high. A break to the downside below the $ 47,500 level could push the price towards the $ 46,500 support, below which the price could test $ 45,500.
Hourly MACD – The MACD is slowly losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is below the 50 level.
Major Support Levels – $ 48,000, followed by $ 47,500.
Major Resistance Levels – $ 49,000, $ 49,500, and $ 50,000.