Bitcoin price started an upside correction above the $48,000 and $50,000 levels against the US Dollar. BTC is now consolidating above $50,000, but it could face a major hurdle near $52,000.
- Bitcoin recovered nicely and it even managed to settle above the $50,000 resistance level.
- The price is facing a strong resistance near $52,000 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $49,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must clear the $52,000 resistance zone for upside continuation in the near term.
Bitcoin Price is Facing Hurdles
After a clear break above the $48,000 level, bitcoin recovered further above $49,000. BTC seems to be forming a support base above the $48,000 level, but it is still well below the 100 hourly simple moving average. The price is now trading well above the 23.6% Fib retracement level of the downward wave from the $58,400 swing high to $45,000 swing low. There was also a break above a major bearish trend line with resistance near $49,500 on the hourly chart of the BTC/USD pair.Bitcoin price is now consolidating above the $50,000 level. However, there are a couple of important hurdles waiting on the upside near the $51,500 and $52,000 levels.
Source:The 50% Fib retracement level of the downward wave from the $58,400 swing high to $45,000 swing low is also near the $51,600 level to act as a major resistance. The main resistance is still near the $52,000 level and the 100 hourly simple moving average. A clear break above the $51,600 and $52,000 resistance levels is needed for more upsides in the near term. The next major resistance above the $52,000 level could be near the $55,000 level.
Another Dip in BTC?
If bitcoin fails to continue higher above the $51,500 and $52,000 resistance levels, there could be another decline. An initial support on the downside is near the $49,500 level.
The first major support is now forming near the $48,000 zone. If there is a clear break below the $48,000 support, the price could revisit the $45,000 support in the near term. Technical indicators: Hourly MACD – The MACD is slowly gaining momentum in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is back above the 50 level. Major Support Levels – $49,500, followed by $48,000. Major Resistance Levels – $51,600, $52,000 and $55,000.