- Bitcoin price traded as low as $43,090 before correcting higher against the US Dollar.
- The recovered above $48,000, but it is facing hurdles near the 55 simple moving average (4-hours).
- There is a key bearish trend line forming with resistance near $49,000 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair is likely to start a strong increase if there is a clear break above $50,000.
Bitcoin price started an upside correction from $43,000 against the US Dollar. BTC must clear $49,000 and $50,000 to start a fresh rally in the near term.
Bitcoin Price Analysis
In the past few days, there was a steady decline in bitcoin price below $52,000 against the US Dollar. BTC even broke the $50,000 support zone and settled below the 55 simple moving average (4-hours).
The pair traded as low as $43,092 before starting an upside correction. It recovered above the $45,000 and $46,000 resistance levels. There was also a break above a declining channel with resistance near $47,000 on the 4-hours chart of the BTC/USD pair.
The pair even spiked above the $50,000 level, but it struggled to clear the 55 simple moving average (4-hours). A high is formed near $50,270 and the pair is currently correcting lower. It traded below the 23.6% Fib retracement level of the recent wave from the $43,092 low to $50,271 high.
There is also a key bearish trend line forming with resistance near $49,000 on the same chart. To start a strong increase, the pair must clear the trend line resistance, $49,000, and the 55 simple moving average (4-hours).
The next key resistance is near the $50,000 level, above which the bulls are likely to take control. Conversely, there could be another decline below the $48,000 support. The next key support is forming near the $46,600 level. It is close to the 50% Fib retracement level of the recent wave from the $43,092 low to $50,271 high. Any more losses might call for a move towards the $45,000 level.
Looking at the chart, bitcoin price is clearly facing hurdles near $49,000 and the 55 simple moving average (4-hours). Overall, the price is likely to start a strong increase if there is a clear break above $50,000.
Technical indicators
4 hours MACD – The MACD is slowly gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is now above the 50 level.
Key Support Levels – $48,000 and $46,600.
Key Resistance Levels – $49,000, $50,000 and $55,000.
