TA: Bitcoin Corrects Gains, Why Dips Could Be Limited Below $48K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin failed to test the $50,000 resistance against the US Dollar. BTC is correcting gains, but dips could be limited below the $47,500 support.

Bitcoin struggled to surpass the $49,500 resistance zone and corrected lower.
The price is trading above $48,000 and the 100 hourly simple moving average.
There was a break below a key rising channel with support near $49,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase if it stays above the $47,500 support zone.

Bitcoin Price Remains Supported

Bitcoin price formed a base and started a fresh increase above the $47,500 level. BTC gained pace for a move above the $48,500 level and the 100 hourly simple moving average.

The upward move was such that the price even spiked above the $49,200 resistance. However, the bulls failed to pump the price towards the $50,000 level. A high was formed near $49,599 and the price started a downside correction.

There was a break below the $49,000 level. Besides, there was a break below a key rising channel with support near $49,000 on the hourly chart of the BTC/USD pair.

The pair traded below the 23.6% Fib retracement level of the upward move from the $45,600 swing low to $45,599 high. Bitcoin tested the $48,000 zone and is currently rising. It is facing resistance near the $48,800 zone.

Source: BTCUSD on TradingView.com

The next key resistance could be $49,200. The main breakout zone is now near $49,500. A clear move above the $49,500 resistance zone could lift the market sentiment for a move above $50,000. The next major stop for the bulls may possibly be near the $51,200 level.

Dips Limited In BTC?

If bitcoin fails to clear the $49,500 resistance zone, it could extend its decline. An immediate support on the downside is near the $48,000 level.

The first major support is near $47,500. It is near the 50% Fib retracement level of the upward move from the $45,600 swing low to $45,599 high. A downside break below the $47,500 level could push the price towards the $46,500 support, below which the price could test $45,500.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bearish zone.

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

Major Support Levels – $48,000, followed by $47,500.

Major Resistance Levels – $49,000, $49,500 and $50,000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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