- Bitcoin price started a downside correction from the $50,450 zone against the US Dollar.
- The price is now trading above $46,500 and the 55 simple moving average (4 hours).
- There is a key bullish trend line forming with support at $49,000 on the 4-hour chart of the BTC/USD pair (data feed from Coinbase).
- The pair could start a fresh increase if it stays above the $48,500 support zone.
Bitcoin price is correcting lower below $49,800 against the US Dollar. BTC might eye another increase if the bulls remain active above the $48,500 zone.
Bitcoin Price Analysis
Bitcoin price extended its increase above the $46,000 level and rallied toward the $50,000 resistance zone. A high was formed near $50,423 before the price started a downside correction. There was a clear move below the $49,500 and $49,200 levels.
The bears were able to push the price below the 23.6% Fib retracement level of the upward move from the $46,889 swing low to the $50,423 high. The price even spiked below $48,800.
However, the bulls were active near the 50% Fib retracement level of the upward move from the $46,889 swing low to the $50,423 high. Bitcoin is now trading above $48,200 and the 55 simple moving average (4 hours). There is also a key bullish trend line forming with support at $49,000 on the 4-hour chart of the BTC/USD pair.
Immediate resistance on the upside is near the $50,000 level. The next major resistance might be near the $50,450 zone. A clear move above the $50,450 level might send the price toward $52,500, above which the price might rise toward the $54,000 level. Any more gains might push the price toward the $55,000 zone.
If there is no upside break, the price might continue to decline below the $49,200 level. The first major support is $48,800 or the trend line. The next key support is near the $48,200 level, below which the price might accelerate lower. In the stated case, the price could decline toward the $47,250 level. Any more losses might send the price toward the $46,500 level.
Looking at the chart, Bitcoin price is clearly trading above $47,500 and the 55 simple moving average (4 hours). Overall, the price could start a fresh increase if it stays above the $48,500 support zone.
Technical Indicators
4 hours MACD – The MACD is now gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is now above the 50 level.
Key Support Levels – $49,000 and $48,500.
Key Resistance Levels – $50,000, $50,450, and $52,500.
