TA: Bitcoin Corrects Lower, Why BTC Could Rally Again

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price extended its increase above $50,000 before correcting lower against the US Dollar. BTC could find bids near $48,250 and it might start a fresh rally.

Bitcoin started a fresh increase above the $49,500 and $50,000 resistance levels.
The price is now trading above $48,500 and the 100 hourly simple moving average.
There was a break below a key bullish trend line 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 as long as it is above the $48,000 support zone.

Bitcoin Price Dips From $50K

Bitcoin price extended its increase above the $49,000 resistance zone. BTC even surpassed the $50,000 resistance zone, but it failed to continue higher.

A high was formed near $50,364 before the price started a downside correction. There was a break below the $50,000 and $49,000 levels. Besides, there was a break below a key bullish trend line with support near $49,000 on the hourly chart of the BTC/USD pair.

The pair tested the 50% Fib retracement level of the upward move from the $46,640 swing low to $50,364 high. Bitcoin is also trading above $48,500 and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

The next key support is near the $48,250 level and $48,000. It is close to the 61.8% Fib retracement level of the upward move from the $46,640 swing low to $50,364 high. If there is a downside break below the $48,000 support zone and the 100 hourly SMA, the price might start a fresh decline. The next major support is near the $46,500 level.

Fresh Rally In BTC?

If bitcoin stays above the $48,000 support zone and the 100 hourly SMA, it could start a fresh increase. An immediate resistance on the upside is near the $49,000 level.

The first major resistance is near the $49,200 level. A close above the $49,200 level could push the price towards the $50,000 zone. Any more gains could lead the price towards the $51,550 resistance. The next major hurdle for the bulls could be near the $52,000 zone.

Technical indicators:

Hourly MACD – The MACD is gaining pace in the bearish zone.

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

Major Support Levels – $48,250, followed by $48,000.

Major Resistance Levels – $49,200, $50,000 and $50,400.

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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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