Bitcoin declined heavily and it even spiked towards $40K against the US Dollar. BTC is recovering, but it must clear $50K for a steady increase in the near term.
Bitcoin Price is Recovering Losses
Bitcoin price failed to stay above the $52,000 and $50,000 support levels. BTC declined heavily and broke many important supports near the $48,000 level.
It even dived below the $45,000 level and traded close to the $40,000 level. A low was formed near $40,150 and the price is now recovering losses. It climbed above the $45,000 resistance zone. There was a break above the 50% Fib retracement level of the recent decline from the $57,688 swing high to $40,150 low.
It is now trading below $50,000 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $48,600 on the hourly chart of the BTC/USD pair.
An immediate resistance on the upside is near the $49,600 level. The first major resistance is near the $60,000 level. The next major resistance is near $50,900. It is close to the 61.8% Fib retracement level of the recent decline from the $57,688 swing high to $40,150 low.
Source: BTCUSD on TradingView.com
A clear break above the $50,900 resistance zone could open the doors for more upsides. The next key resistance is near the $52,500 level, above which the price could rise steadily. The next stop for the bulls may possibly be near the $53,500 level.
More Losses In BTC?
If bitcoin fails to clear the $50,000 resistance zone, it could extend losses. An immediate support on the downside is near the $48,500 level.
The first major support is now forming near the $47,500 level. A downside break below the $47,500 support may perhaps start a sharp decline. The next stop for the bears might be $55,000.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the 50 level.
Major Support Levels – $48,500, followed by $45,000.
Major Resistance Levels – $50,000, $50,900 and $52,500.
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