Home CryptocurrencyAnalysis Bitcoin price revisits $50,000, why BTC could start a short-term correction

Bitcoin price revisits $50,000, why BTC could start a short-term correction

by SuperiorInvest

Bitcoin price extended its rally above the $48,800 resistance. BTC tested $50,000 and is currently showing signs of a downward correction.

  • Bitcoin price rose above the $48,500 and $48,800 resistance levels.
  • The price is trading above $48,800 and the 100 hourly simple moving average.
  • A short-term ascending channel is forming with support at $49,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a downward correction below the $49,750 and $49,500 levels.

Bitcoin price rises 5%

Bitcoin price remained in a positive zone above the $48,000 resistance zone. BTC extended its rally and surpassed the $48,800 resistance zone. Finally, the price jumped above the $50,000 level.

A new multi-week high formed near $50,339 and the price is now consolidating gains. There was a small drop below the $50,000 level. The price is still above the 23.6% Fib retracement level of the recent rally from the low of $47,642 to the high of $50,339.

Bitcoin price is now trading above $48,800 and the 100 hourly simple moving average. There is also a short-term ascending channel forming with support at $49,750 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The immediate resistance is near the $50,250 level. The next key resistance could be $50,400, above which the price could start another decent rise. The next stop for the bulls is perhaps the $51,200 level. A clear move above the $51,200 resistance could send the price towards the $52,000 resistance. The next resistance could be near the $53,000 level.

Downward correction in BTC?

If Bitcoin fails to break above the $50,250 resistance zone, it could start a downward correction. Immediate support on the downside is near the $49,750 level or the channel trend line.

The first major support is $49,000 and the 50% Fibonacci retracement level of the recent rally from the low of $47,642 to the high of $50,339. If there is a close below $49,000, the price could gain bearish momentum. In the indicated case, the price could fall towards the support of $47,650.

Technical indicators:

MACD Hourly: The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Main support levels: $49,750, followed by $49,000.

Main resistance levels: $50,250, $50,400 and $51,200.

Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.

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