Bitcoin started a new rally above the $ 50,000 resistance against the US Dollar. BTC is showing positive signs and there could be more gains towards $ 52,000.
- Bitcoin gained pace after it broke the $ 49,500 resistance zone.
- The price is trading well above $ 50,000 and the 100 hourly simple moving average.
- There was a breakout in a key declining channel with resistance near $ 48,800 on the hourly chart of the BTC / USD pair (data feed from Kraken).
- The pair could correct lower, but declines could be capped below the $ 50,000 zone.
Bitcoin price gains momentum
The price of Bitcoin formed a base and started a new surge above the $ 48,000 level. BTC gained pace to move above the $ 48,200 level and the 100 hourly simple moving average.
Additionally, there was a breakout in a key declining channel with resistance near $ 48,800 on the hourly chart of the BTC / USD pair. The pair rallied above the $ 50,000 resistance zone to move into a positive zone. The bulls were able to push the price above the $ 50,000 level.
Bitcoin traded as high as $ 51,500 and is currently consolidating gains. It is well above the 23.6% Fib retracement level of the recent rally from the low of $ 48.105 to the high of $ 51,500. It is also trading well above $ 50,000 and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
An immediate resistance on the upside is near the $ 51,500 level. The next key resistance could be $ 52,000. A clear move above the $ 52,000 resistance zone could lift the price further. The next major stop for the bulls is likely near the $ 53,200 level.
Limited dips in BTC?
If bitcoin fails to clear the $ 51,500 resistance zone, a downward correction could begin. An immediate support to the downside is near the $ 50,700 level.
The first major support is nearing $ 50,000. It is close to 50% of the Fibonacci retracement level of the recent surge from the low of $ 48,105 to the high of $ 51,500. A break to the downside below the $ 50,000 level could increase the selling pressure in the near term. In the indicated case, the price could perhaps decline towards the $ 48,800 support zone.
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is well above the 50 level.
Major Support Levels – $ 50,700, followed by $ 50,000.
Major Resistance Levels – $ 51,500, $ 52,000, and $ 53,200.