TA: Bitcoin Rejected above $50K, Why BTC Could Correct Gains
Bitcoin price failed to stay above $50,000 and corrected lower against the US Dollar. BTC could correct lower towards the $48,250 support in the near term.
- Bitcoin tested the $50,500 resistance level before correcting lower.
- The price is now trading near $49,000 and the 100 hourly simple moving average.
- There was a break below a key bullish trend line with support near $49,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct lower towards $48,250 or even $47,300 in the near term.
Bitcoin Price Corrects Lower
Bitcoin price traded above the $50,000 resistance, but there was no upside continuation. BTC tested the $50,500 resistance level and recently started a downside correction.
There was a break below the $50,000 and $49,800 levels. The bears pushed the price below the 50% Fib retracement level of the upward move from the $48,098 swing low to $50,506 high. There was also a break below a key bullish trend line with support near $49,500 on the hourly chart of the BTC/USD pair.
Bitcoin is now trading near $49,000 and the 100 hourly simple moving average. The 61.8% Fib retracement level of the upward move from the $48,098 swing low to $50,506 high seems to be acting as a support.
Source: BTCUSD on TradingView.com
If there is a downside break below the 100 hourly simple moving average, the price could continue to move down. An immediate support is near the $48,500. The next major support is near the $48,250 level. Any more losses could open the doors for a move towards the $47,300 support zone in the near term.
Fresh Increase in BTC?
If bitcoin stays above the $48,250 support zone, it could start a fresh increase. On the upside, an immediate resistance is near the $49,500 level.
The first key resistance is near the $50,000 level, above which the bulls might aim a retest of $50,500. Any more gains could set the pace for a larger increase above $51,000. The next major stop for the bulls may possibly be near the $52,000 level in the coming days.
Technical indicators:
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $48,250, followed by $47,300.
Major Resistance Levels – $49,500, $50,000 and $50,500.
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OhNoCrypto
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, @KhareemSudlow
