Bitcoin price remains well supported above the $47,000 zone against the US Dollar. BTC must clear $48,500 to start a decent increase towards the $50,000 level.
Bitcoin corrected lower after it failed to clear the $48,500 resistance zone.
The price is still trading above $47,000 and the 100 hourly simple moving average.
There was a break above a short-term declining channel with resistance near $47,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue higher towards the $50,000 level if it breaks the $48,500 resistance.
Bitcoin Price Remains Supported
Bitcoin price gained pace after it cleared the $47,000 resistance level. BTC even surpassed the $48,000 resistance zone and the 100 hourly simple moving average.
However, the bears were active near the $48,500 zone. The price traded as high as $48,481 before there was a downside correction. There was a break below the $48,000 and $47,800 levels. The price even broke the 23.6% Fib retracement level of the upward move from the $43,374 swing low to $48,481 high.
Bitcoin found support near the $47,200 level and there was no downside continuation. As a result, there was a fresh increase above the $47,500 level.
Moreover, there was a break above a short-term declining channel with resistance near $47,800 on the hourly chart of the BTC/USD pair. An immediate resistance on the upside is near the $48,000 level. The first major resistance is now near the $48,500 level.
To start another increase, the price must clear the $48,500 resistance. If there is a clear break above $48,500, the price could easily rise towards the key $50,000 resistance in the coming sessions.
Dips Limited In BTC?
If bitcoin fails to clear the $48,000 resistance zone, it could start another downside correction. An immediate support on the downside is near the $47,600 level and broken channel trend line. If the price breaks the $47,600 level, it could test the $47,200 support level.
The next major support is near the $46,000 zone or the 100 hourly simple moving average. Besides, 50% Fib retracement level of the upward move from the $43,374 swing low to $48,481 high is also near $45,900 to provide support.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $47,200, followed by $47,000.
Major Resistance Levels – $48,000, $48,500 and $50,000.
