Bitcoin Stays Above $ 50K, Why Bulls Are Targeting New Monthly High

By | December 27, 2021

Bitcoin is holding gains above the $ 50,000 resistance against the US Dollar. BTC is showing positive signs and there could be more gains above $ 52,000.

  • Bitcoin settled above the $ 50,000 resistance zone and declines remained supported.
  • The price is trading well above $ 50,000 and the 100 hourly simple moving average.
  • There was a break above a key downtrend line with resistance near $ 50,400 on the hourly chart of the BTC / USD pair (data feed from Kraken).
  • The pair is picking up pace and could soon clear the $ 51,200 resistance zone in the near term.

Bitcoin price gains pace

Bitcoin price initiated a small downward correction from the $ 51,800 zone. BTC declined below the $ 51,200 level to move into a short-term bearish zone.

There was a break below the 50% Fib retracement level of the rise of the upward move from the low of $ 48.105 to the high of $ 51,800. There was even a spike below the $ 50,000 level and the 100 hourly simple moving average.

However, the declines remained capped below $ 50,000. The price tested the 61.8% Fib retracement level of the rise of the upward move from the low of $ 48,105 to the high of $ 51,800. It formed a base and started a new rally above the $ 50,000 level.

Bitcoin is trading well above $ 50,000 and the 100 hourly simple moving average. There was a break above a key downtrend line with resistance near $ 50,400 on the hourly chart of the BTC / USD pair.

Bitcoin price

Source: BTCUSD on TradingView.com

An immediate resistance on the upside is near the $ 51,200 level. The next key resistance could be $ 51,500. A clear move above the $ 51,500 resistance zone could initiate a further rally. The next major stop for the bulls is possibly near the $ 53,500 level.

Limited dips in BTC?

If bitcoin fails to clear the $ 51,200 resistance zone, another downward correction could begin. An immediate support to the downside is near the $ 50,200 level.

The first major support is nearing $ 50,000. A break to the downside below the $ 50,000 level could push the price towards the $ 49,400 support. Any further loss is likely to push the price towards the $ 48,500 support zone.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is well above the 50 level.

Major Support Levels – $ 50,200, followed by $ 50,000.

Major Resistance Levels – $ 51,500, $ 52,000, and $ 53,500.

Source: https://www.newsbtc.com/analysis/btc/bitcoin-steadies-above-50k-2/

Leave a Reply

Your email address will not be published. Required fields are marked *