TA: Bitcoin Bulls Keeps Pushing, Why Rally Isn’t Over Yet

NewsBTC

Bitcoin price extended its increase above $49,000 against the US Dollar. BTC might continue to rally and it could even surpass the $50,000 resistance in the near term.

  • Bitcoin climbed higher above the $47,500 and $48,500 resistance levels.
  • The price is now trading above $48,000 and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $48,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct lower, but it might find support near $47,400 or $47,000.

Bitcoin Price Remains In Uptrend

Bitcoin price started a strong increase above the $46,500 resistance level. BTC broke the $47,500 resistance level and settled above the 100 hourly simple moving average.

It even climbed above $49,000 before correcting lower. However, downsides were limited below the $46,500 support zone. A low was formed near $46,895 and the price started a fresh increase. It climbed higher above the $47,500 and $48,500 resistance levels.

Bitcoin is now trading above $48,000 and the 100 hourly simple moving average. A high is formed near $49,750 and it is now consolidating gains. An immediate support on the downside is near the $49,000 level.

It is close to the 23.6% Fib retracement level of the recent wave from the $46,895 swing low to $49,750 high. There is also a major bullish trend line forming with support near $48,400 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

On the upside, an immediate resistance is near the $49,600 level. The first major resistance is near the $49,750 level, above which the price could visit $50,000. A close above the $50,000 level could start another increase in the near term. The next major stop for the bulls may possibly be near the $52,000 level.

Dips Limited In BTC?

If bitcoin fails to clear the $50,000 resistance zone, it could start a fresh downside correction. An immediate support on the downside is near the $49,000 level.

The first major support is now forming near the $48,400 level and the trend line. It is near the 50% Fib retracement level of the recent wave from the $46,895 swing low to $49,750 high. A break below the trend line support might push the price towards the $47,550 level and the 100 hourly SMA.

Technical indicators:

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

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

Major Support Levels – $48,400, followed by $47,550.

Major Resistance Levels – $49,500, $50,000 and $52,000.

via NewsBTC

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