More

    Why Bitcoin Turns Attractive On Dips Above $50K

    Bitcoin price gained pace and cleared the $50,000 resistance against the US Dollar. BTC could correct lower, but dips might remain limited below $50,000.

    • Bitcoin climbed higher above the $49,500 and $50,000 resistance levels.
    • The price is now trading above $50,000 and the 100 hourly simple moving average.
    • There is a key bullish trend line forming with support near $49,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair could correct lower, but it might find support near $50,000 or $49,500.

    Bitcoin Price Gains Momentum

    Bitcoin price remained in an uptrend and extended its increase above the $49,500 resistance zone. BTC even broke the $50,000 resistance level and settled above the 100 hourly simple moving average.

    The bulls remained in action and they were able to push the price above the $51,000 level. It traded close to $52,000 and a high is formed near $51,888. The price is now consolidating gains above the $51,000 level.

    An immediate support on the downside is near the $50,800 level. It is close to the 23.6% Fib retracement level of the recent increase from the $46,895 swing low to $51,888 high. There is also a key bullish trend line forming with support near $49,500 on the hourly chart of the BTC/USD pair.

    Source: BTCUSD on TradingView.com

    On the upside, an initial resistance is near the $51,500 level. The first major resistance is near the $52,000 level, above which the price could start a fresh increase. The next major resistance for the bulls may possibly be near the $53,200 level. Any more gains could set the pace for a move towards the $55,000 level.

    Dips Supported In BTC?

    If bitcoin fails to clear the $52,000 resistance zone, it could start a fresh downside correction. An immediate support on the downside is near the $50,800 level.

    The first major support is now forming near the $50,000 level and the trend line. It is near the 50% Fib retracement level of the recent increase from the $46,895 swing low to $51,888 high. If there is a break below the trend line support, the price might decline towards the $49,000 level and the 100 hourly SMA.

    Technical indicators:

    Hourly MACD – The MACD is slowly 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 – $50,800, followed by $50,000.

    Major Resistance Levels – $51,500, $52,000 and $53,200.

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Stakeholders talk about what could be the way forward

    The government’s plan for a Bill to act against private cryptocurrencies has reopened the debate on the fast-moving, highly volatile sector, where policy has...

    Here’s What’s Next for Polkadot, The Sandbox and Three Low-Cap Altcoins, According to Crypto Analyst

    A popular crypto strategist and trader is mapping out the levels where Polkadot, The Sandbox and three other low-cap altcoins could bounce and potentially...

    This Ethereum L2 rose by 1551%, outperformed Loopring, dYdX, Optimism

    Ethereum has seen a myriad of Layer-2 solutions developing over time, with the fight to gain prominence never-ending. However, the emergence of Boba Network...

    Bitcoin AUM falls 9.5% to record largest monthly pullback since July

    While Bitcoin’s (BTC) position as a viable hedge against fiat inflation continues to attract investors, new data reflects a change in sentiment as Ethereum...

    Is crypto mania more a symptom than a cause?

    The draft legislation on crypto currency being introduced in Parliament and the stance of the RBI suggest that consideration is being given to banning...

    Newsletter

    Subscribe to stay updated.