Bitcoin Corrects Gains, Why Dips Could Be Limited Below $48K

Bitcoin did not test the $50,000 resistance to the US Dollar. BTC has been correcting its gains. However, dips below the $47.500 support could be restricted.

  • Bitcoin failed to break the $49,000.500 resistance and was corrected lower.
  • The price trades above $48,000.
  • The hourly chart for the BTC/USD pair showed a breaking below the key channel of rising support, with support at $49,000 (data feed Kraken).
  • If the pair remains above $47,500 it could begin a new increase.

Bitcoin Price Remains Supported

Bitcoin prices formed a solid base, and then started to rise again above $47,000. BTC gained momentum for a rise above $48,500 and the 100-hourly simple moving average.

This upward movement was so strong that it even surpassed the resistance of $49,200. But, bulls did not push the price to the $50,000 threshold. The price reached a high of $49,599 before it began a downward correction.

The break was below $49,000. A break was also observed below the $49,000 level, which is a crucial rising channel that has support at around $49,000 per hour on the hourly chart for the BTC/USD pair.

This pair was trading below 23.6% Fib level of the upward movement from the $45,600 swing high to the $45,599 low. Bitcoin is now at the $48,000 mark and on the rise. The $48,800 area is where Bitcoin faces resistance.

Bitcoin Price

Source: BTCUSD from TradingView.com

Next key resistance is $49,200. The $49,500 mark is the main breakout area. The market could be more positive if it moves above the $49,000.500 resistance level. This would allow for an increase in optimism about a possible move to $50,000. Next stop for bulls might be at the $51,200 level.

BTC Dips Limited

It could further slide if bitcoin does not clear the $49500 resistance area. The $48,000 level is a support area for the downside.

Nearly $47,500 is the first significant support. This is close to the 50 percent Fib retracement point of the upward swing from $45,600 swing lows to $45,599 tops. A fall below $47500 may push the price higher towards the $46,500 resistance, where it could reach $45,500.

Indicators technical

Hourly MACD – The MACD is slowly losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is below the 50 level.

Major Support Levels – $48,000, followed by $47,500.

Major Resistance Levels – $49,000, $49,500 and $50,000.

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