Bitcoin Corrects Gains, Why Dips Could Be Capped Below $ 48K

By | December 23, 2021

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.

Bitcoin price

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.

Technical indicators:

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.

Source: https://www.newsbtc.com/analysis/btc/bitcoin-corrects-gains-48k/

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