- Bitcoin remained well bid above $43,000 and $45,000 support levels.
- The price is now approaching the $50,000 resistance and the 100 simple moving average (4-hours).
- There is a key contracting triangle forming with resistance near $50,200 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to start a strong increase if it clears the $50,000 and $50,500 resistance levels.
Bitcoin price is Gaining Momentum
This past week, bitcoin price corrected lower below the $48,000 support zone against the US Dollar. The BTC/USD pair even broke the $47,000 level and settled below the 100 simple moving average (4-hours).
However, the bulls were able to protect a downside break below the $46,000 area. A low was formed near $46,350 before the price started a fresh increase. It cleared the $47,000 and $48,000 resistance levels. There was also a break above the 50% Fib retracement level of the downward move from the $52,640 swing high to $46,350 low.
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Source: BTCUSD on TradingView.com
It is now approaching the $50,000 resistance and the 100 simple moving average (4-hours). There is also a key contracting triangle forming with resistance near $50,200 on the 4-hours chart of the BTC/USD pair.
The triangle resistance is close to the 61.8% Fib retracement level of the downward move from the $52,640 swing high to $46,350 low. A clear break above the triangle resistance could open the doors for a fresh increase towards the $52,000 and $53,000 resistance levels. The next major hurdle for bitcoin could be near $55,000.
Limited Downsides in BTC?
If bitcoin fails toc clear the $50,000 and $50,500 resistance levels, it could correct lower. The first key support is near the $48,800 level.
The main support is near the triangle lower trend line and $48,000. A clear break below the triangle support zone could clear the path for a move towards the $45,00 support zone in the near term.
4 hours MACD – The MACD for BTC/USD is showing positive signs in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Level – $48,000
Major Resistance Level – $50,000