TA: Bitcoin Corrects Lower, Why BTC Could Rally Again
Bitcoin price extended its increase above $50,000 before correcting lower against the US Dollar. BTC could find bids near $48,250 and it might start a fresh rally.
Bitcoin started a fresh increase above the $49,500 and $50,000 resistance levels.
The price is now trading above $48,500 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $49,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase as long as it is above the $48,000 support zone.
Bitcoin Price Dips From $50K
Bitcoin price extended its increase above the $49,000 resistance zone. BTC even surpassed the $50,000 resistance zone, but it failed to continue higher.
A high was formed near $50,364 before the price started a downside correction. There was a break below the $50,000 and $49,000 levels. Besides, there was a break below a key bullish trend line with support near $49,000 on the hourly chart of the BTC/USD pair.
The pair tested the 50% Fib retracement level of the upward move from the $46,640 swing low to $50,364 high. Bitcoin is also trading above $48,500 and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
The next key support is near the $48,250 level and $48,000. It is close to the 61.8% Fib retracement level of the upward move from the $46,640 swing low to $50,364 high. If there is a downside break below the $48,000 support zone and the 100 hourly SMA, the price might start a fresh decline. The next major support is near the $46,500 level.
Fresh Rally In BTC?
If bitcoin stays above the $48,000 support zone and the 100 hourly SMA, it could start a fresh increase. An immediate resistance on the upside is near the $49,000 level.
The first major resistance is near the $49,200 level. A close above the $49,200 level could push the price towards the $50,000 zone. Any more gains could lead the price towards the $51,550 resistance. The next major hurdle for the bulls could be near the $52,000 zone.
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just below the 50 level.
Major Support Levels – $48,250, followed by $48,000.
Major Resistance Levels – $49,200, $50,000 and $50,400.