Bitcoin price climbed higher above the $48,000 resistance. BTC tested $48,800 and is currently showing signs of a downside correction.
- Bitcoin price climbed higher above the $46,500 and $48,000 resistance levels.
- The price is trading above $47,500 and the 100 hourly Simple moving average.
- There is a key bullish trend line forming with support at $48,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to move up unless there is a close below the $48,000 support.
Bitcoin Price Enters Positive Territory
Bitcoin’s value initiated a significant uptrend, surpassing the resistance at $45,500. Negotiating through obstacles around $46,000 and $47,200, BTC ventured further into positive territory.
Bullish momentum strengthened, propelling the price above the $48,000 resistance and testing the $48,800 zone. A fresh multi-week peak materialized at around $48,775, with the price presently consolidating its gains. Although there was a brief dip below the $48,500 level, the decline was minor.
The price retraced below the 23.6% Fibonacci retracement level of the recent surge from the $46,602 low to the $48,775 high. Nevertheless, Bitcoin is currently trading above $47,500 and the 100-hourly Simple Moving Average.
On the hourly chart of the BTC/USD pair, a pivotal bullish trend line is forming, offering support at $48,000. Immediate resistance lies near the $48,500 level, with the subsequent significant hurdle at $48,800. Surpassing this level could pave the way for another substantial upward movement in price.
The bulls’ potential target appears to be $49,250 in the next phase. A decisive breakthrough above the $49,250 resistance might propel the price towards the $49,800 resistance. Subsequently, the next hurdle could be around the $50,000 level.
Is Bitcoin Headed for a Downward Correction?
If Bitcoin is unable to surpass the resistance zone at $48,800, there is a possibility of a downside correction. Immediate support on the downside is anticipated near the $48,000 level or the existing trend line.
The initial significant support level is at $47,650, along with the 50% Fibonacci retracement level of the recent upward movement from the $46,602 low to the $48,775 high. A close below $47,650 could trigger bearish momentum, potentially leading the price towards the $46,500 support level.
Examining the technical indicators:
- Hourly MACD: The MACD is showing a slowdown in bullish momentum.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently around the 50 level.
Key support levels to monitor are $48,000, followed by $47,650, while significant resistance levels include $48,500, $48,800, and $50,000.