TA: Bitcoin Consolidates, Why BTC Could Start A Fresh Increase

NewsBTC

Bitcoin price is holding the $48,000 support zone against the US Dollar. BTC must clear $49,500 and $49,750 to start a fresh increase in the near term.

  • Bitcoin broke the $48,500 resistance, but it faced hurdles near $49,500.
  • The price is now trading above $48,500 and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $48,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a fresh increase unless it clears the $48,000 support and the 100 hourly SMA.

Bitcoin Price Holds Key Support

Bitcoin price formed a base above the $48,000 and started a fresh increase. BTC broke the $49,000 resistance and settled above the 100 hourly simple moving average.

However, the price failed to gain strength above the $49,500 level. A high was formed near $49,657 before the price started a downside correction. There was a drop below the $49,000 support level. The price moved below the 23.6% Fib retracement level of the upward move from the $46,486 swing low to $49,657 high.

Bitcoin is now trading above $48,500 and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $48,500 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The next key support is near the $48,000 zone and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the upward move from the $46,486 swing low to $49,657 high. If there is a downside break below the $48,000 support zone, the price might continue to move down. The next major support is near the $46,550 level.

Fresh Increase In BTC?

If bitcoin stays above the $48,000 support zone, 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 $49,350 level. The main resistance is near the $49,500 level. A clear break above the $49,500 level could set the pace for more gains. In the stated case, the price might even surpass the $50,000 zone.

Technical indicators:

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

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

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

Major Resistance Levels – $49,000, $49,350 and $49,500.

via NewsBTC

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