Bitcoin price has been on a remarkable rally, surpassing the key resistance level at $48,800. The surge in price saw BTC testing the $50,000 mark, indicating a significant uptrend in the market. However, after reaching this milestone, BTC is now displaying signs of a possible downside correction.
Bitcoin price remains in a positive zone but faces immediate resistance
Currently, Bitcoin is trading above the $48,800 resistance level, which is a positive sign for the cryptocurrency. It is also trading above the 100 hourly Simple Moving Average, further indicating a bullish trend in the market. However, immediate resistance near the $50,250 level poses a challenge for Bitcoin’s upward momentum. Breaking above this resistance could trigger another decent increase in price.
Bitcoin has formed a short-term rising channel with support at $49,750, according to data feed from Kraken. If the price fails to rise above the $50,250 resistance, a downside correction may occur. Immediate support can be found near the $49,750 level or the channel trend line. The first major support level is at $49,000, followed by the 50% Fibonacci retracement level of the recent rally from the $47,642 swing low to the $50,339 high. A close below $49,000 could initiate bearish momentum, potentially leading to a dive towards the $47,650 support level.
On the other hand, if Bitcoin manages to break above the immediate resistance level of $50,250, the next key resistance could be at $50,400. Surpassing this level may fuel another significant surge in price, with the next target being $51,200. A clear move above this resistance level could propel Bitcoin towards the $52,000 resistance, with further resistance near $53,000.
Technical indicators suggest a mixed picture for Bitcoin’s price trend. The hourly MACD (Moving Average Convergence Divergence) is losing pace in the bullish zone, indicating a potential slowdown in the upwards momentum. However, the hourly RSI (Relative Strength Index) for BTC/USD is above the 50 level, signifying bullish sentiment in the market.
It is important to note that this analysis is for educational purposes only and does not represent the opinions of NewsBTC. Investing in cryptocurrencies carries risks, and it is advised to conduct thorough research before making any investment decisions. Users should exercise caution and use information provided on this website entirely at their own risk.
Bitcoin’s price has shown remarkable strength in its rally, surpassing key resistance levels and reaching the $50,000 mark. However, there are signs of a possible downside correction, with immediate resistance near $50,250. Support levels are at $49,750 and $49,000, while potential key resistance levels lie at $50,400, $51,200, and $52,000. Investors should carefully analyze market trends and conduct their own research before making any investment decisions in the volatile cryptocurrency market.
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