Bitcoin dropped sharply, and reached $40K for the US Dollar. BTC is slowly recovering but must reach $50K to continue its steady rise in the short term.
- Bitcoin seeks to recover above $47,000 and $47.500 levels.
- Now, the price trades below $50,000.
- On the hourly chart for the BTC/USD pair, there is support close to $48,600. This trend line forms a bullish signal (data feed Kraken).
- A clear break of at least $50,000 could lead to a solid upwards move for the pair.
Bitcoin Prices are Recovering from Losses
Bitcoin prices failed to maintain above $52,000 and $50,000 levels. BTC dropped sharply, breaking many key supports at the $48,000 mark.
The price even fell below $45,000 and was trading close to $40,000 levels. The price has now recovered its losses after a low of $40,150. The price climbed to the $45,000 resistance level. The Fib retracement level at 50% of the current decline, from the swing high in $57688 to the low in $40,150, was broken.
The 100-hourly simple moving average and below $50,000 are the current levels. A key bullish trendline is also in place with support close to $48,600, as shown on the hourly BTC/USD chart.
The $49,600 mark is the immediate resistance to the upside. At the $60,000 threshold, there is the initial major resistance. Next is $50,900. This is near the 61.8% Fib level of the decline from $57,688 high to $40,000.
Source: BTCUSD from TradingView.com
Clear breaks above the $50,000.00 resistance zone may open up more opportunities. Next is the $52,500 resistance level. If the price rises above that, it could be a steady climb. It is possible that the 53,000-foot mark will be the next major resistance for bulls.
BTC: More losses
It could cause further losses if bitcoin does not clear the $50,000 resistance area. The $48,500 level is a support area for the downside.
At the $47,000.500 level, there is a first support. If the support level falls below $47.500, it could signal a sudden decline. For the bears, $55,000 could be their next goal.
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the 50 level.
Major Support Levels – $48,500, followed by $45,000.
Major Resistance Levels – $50,000, $50,900 and $52,500.