- Bitcoin gained pace after it broke the $49,500 resistance zone.
- The price is trading well above $50,000 and the 100 hourly simple moving average.
- There was a break a key declining channel with resistance near $48,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct lower, but dips might be limited below the $50,000 zone.
Bitcoin Price Gains Momentum
Besides, there was a break a key declining channel with resistance near $48,800 on the hourly chart of the BTC/USD pair. The pair rallied above the $50,000 resistance zone to move into a positive zone. The bulls were able to push the price above the $50,000 level.
Bitcoin traded as high as $51,500 and currently consolidating gains. It is well above the 23.6% Fib retracement level of the recent increase from the $48,105 swing low to $51,500 high. It is also trading well above $50,000 and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
An immediate resistance on the upside is near the $51,500 level. The next key resistance could be $52,000. A clear move above the $52,000 resistance zone could lift the price further higher. The next major stop for the bulls may possibly be near the $53,200 level.
Dips Limited In BTC?
If bitcoin fails to clear the $51,500 resistance zone, it could start a downside correction. An immediate support on the downside is near the $50,700 level.
The first major support is near $50,000. It is near the 50% Fib retracement level of the recent increase from the $48,105 swing low to $51,500 high. A downside break below the $50,000 level could increase selling pressure in the near term. In the stated case, the price may perhaps decline towards the $48,800 support zone.
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.