Bitcoin price rose at an accelerated pace and ditched the $50,000 resistance against the US Dollar. BTC could correct lower, but declines may remain limited below $50,000.
- Bitcoin surged above the $49,500 and $50,000 resistance levels.
- The price is now trading above $50,000 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $49,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct lower, but it could find support near $50,000 or $49,500.
Bitcoin Price Gaining Momentum
Bitcoin price remained in an uptrend and extended its increase above the $49,500 resistance area. BTC even broke the $50,000 resistance level and settled above the 100 hourly simple moving average.
The bulls remained in action and were able to push the price above the $51,000 level. It traded near $52,000 and a top formed near $51,888. The price is now consolidating gains above the $51,000 level.
There is immediate support on the downside near the $50,800 level. It is close to the 23.6% Fib retracement level of the recent increase from the $46,895 swing low to the $51,888 high. There is also a major bullish trend line forming with support near $49,500 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
On the upside, there is an initial resistance near the $51,500 level. The first major resistance is near the $52,000 level, above which the price could start a new rally. The next major resistance for the bulls might be near the $53,200 level. Any further gains could set the pace for a move towards the $55,000 level.
Support dips in bitcoin?
If Bitcoin fails to break above the $52,000 resistance area, it may start a new downside correction. There is immediate support on the downside near the $50,800 level.
The first major support is now forming near the $50,000 level and the trendline. It is close to the 50% Fib retracement level of the recent increase from the $46,895 swing low to the $51,888 high. If there is a break below the trendline support, the price may decline towards the $49,000 level and the 100 hourly SMA.
Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.
Key Support Levels – $50,800, followed by $50,000.
The main resistance levels are $51,500, $52,000 and $53,200.