Bitcoin was unable to clear the $ 52,000 resistance zone against the US Dollar. BTC starts off with a major drop and is trading below the $ 50,000 support.
- Bitcoin made two attempts to clear the $ 51,800- $ 52,000 resistance zone but failed.
- The price is trading below $ 50,000 and the 100 hourly simple moving average.
- There was a break below a key uptrend line with support near $ 51,200 on the hourly chart of the BTC / USD pair (data feed from Kraken).
- The pair is declining and could even dip below the $ 49,500 support zone in the near term.
Bitcoin price forms a bearish pattern
Bitcoin price made another attempt to clear the $ 51,800 resistance zone. BTC spiked towards the $ 52,000 zone, where the bears took a position. There appears to be a double top pattern forming near $ 52,000.
A high was formed near $ 52,111 and the price started a new decline. There was a break below the $ 51,200 and $ 50,500 support levels. There was also a break below a key uptrend line with support near $ 51,200 on the hourly chart of the BTC / USD pair.
The pair traded below the 50% Fib retracement level of the up move from the low of $ 49,477 to the high of $ 52,111. Bitcoin is now trading below $ 50,000 and the 100 hourly simple moving average.
It is also trading below the 76.4% Fib retracement level of the up move from the low of $ 49,477 to the high of $ 52,111. An immediate support is near the $ 49,500 zone. The first major support is near $ 49,000.
Source: BTCUSD on TradingView.com
A break to the downside below the $ 49,000 level could push the price towards the $ 48,800 support. Possibly any further loss can push the price towards the $ 47,500 support zone.
Recovery in BTC?
If bitcoin manages to stay above the $ 49,500 support zone, it could start a decent rally. An immediate resistance on the upside is near the $ 50,000 level.
The next key resistance could be $ 50,800 and the 100 hourly SMA. A clear move above the $ 50,800 resistance zone could initiate a further rally. The next major stop for the bulls is likely near the $ 51,800 level.
Hourly MACD – The MACD is slowly picking up pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is well below the 50 level.
Major Support Levels – $ 49,500, followed by $ 47,500.
Major Resistance Levels – $ 50,000, $ 50,800, and $ 51,800.