Bitcoin saw a new increase of more than $50,000 against the US Dollar. BTC has shown positive signs, and could see further gains toward $52,000.
- Bitcoin’s momentum increased after breaking the $49,000.500 resistance zone.
- It is trading at well over $50,000, which is above the simple moving average of 100 hours.
- The hourly chart for the BTC/USD pair showed a breakout of a critical declining channel, with resistance at $48,800 (data feed Kraken).
- However, the pair might correct further below $50,000. Dips could be restricted to lower levels.
Momentum gains Bitcoin’s price
The Bitcoin price established a foundation and began a new rise above $48,000. BTC moved above $48,200, the 100-hourly simple moving average and gained speed.
On the hourly chart, the BTC/USD pairs showed a breakout of the key channel that was in decline with resistance close to $48,800. In order to make it into the positive zone, the pair rallied past $50,000. Bulls succeeded in pushing the price higher than the $50,000 mark.
Bitcoin reached a high of $51,500, and is currently consolidating its gains. This is far above the 23.6% Fib Retracement level that was used to trace the increase in bitcoin from $48,105 low to $51,500 high. Also, it is trading above $50,000 as well as the simple moving average of 100 hours.
Source: BTCUSD from TradingView.com
Near the $51,500 threshold, there is immediate resistance for the upside. Next key resistance is $52,000. Price could climb further if the resistance level of $52,000 is breached. For bulls, the next stop may be at the $53,200 mark.
BTC Dips Limited
A downside correction could occur if bitcoin does not clear the $51,500 resistance area. Support for the downside lies near the 50,700 mark.
It is close to $50,000 for the initial major support. This is just below the Fib retracement of the increase in price from the $48,105 low to the $51,500 high. Selling pressure could be increased if the price falls below the $50,000 mark. If this is the case, then the price might fall to the $48,800 support level.
Technical indicators
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.
Major Support Levels – $50,700, followed by $50,000.
Major Resistance Levels – $51,500, $52,000 and $53,200.
