Bitcoin started an upside correction above the $48,000 resistance zone against the US Dollar. BTC could gain pace if there is a close above the $50,000 level.
- Bitcoin started a decent increase above the $47,500 and $48,000 levels.
- The price is now trading above $48,500 and the 100 hourly simple moving average.
- There was a break above a connecting bearish trend line with resistance near $48,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could accelerate higher if there is a close above the $50,000 resistance zone.
Bitcoin Price Starts Recovery
Bitcoin price started a recovery wave above the $47,500 resistance zone. BTC bulls gained strength for a move above the $48,000 resistance zone.
The upward move was such that the price broke the Fib retracement level of the recent decline from the $48,762 swing high to $46,666 low. Besides, there was a break above a connecting bearish trend line with resistance near $48,200 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading above $48,500 and the 100 hourly simple moving average. It is testing the $49,250 resistance zone. It seems like the 1.236 Fib extension level of the recent decline from the $48,762 swing high to $46,666 low is acting as a resistance.
Source: BTCUSD on TradingView.com
The first major resistance is near the $49,500 level. The next key resistance could be $50,000. A proper break above the $50,000 resistance could open the doors for more upsides. The next key resistance is near the $51,200 level, above which the price may possibly rise towards $52,000.
Dips Limited In BTC?
If bitcoin fails to clear the $49,250 resistance zone, it could start a downside correction. An immediate support on the downside is near the $48,250 level and the 100 hourly SMA.
The first major support is now forming near the $48,000 level. The main support is now near $47,500. A downside break below the $47,500 support may perhaps start a fresh decline in the near term. In the stated case, it could decline towards the $45,000 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 currently above the 50 level.
Major Support Levels – $48,250, followed by $47,500.
Major Resistance Levels – $49,250, $50,000 and $52,000.
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Author: Aayush Jindal