Bitcoin price has been on a bullish rally, surpassing key resistance levels and reaching a multi-week high above $50,000. However, recent market indicators suggest that BTC may be due for a downward correction. In this article, we will analyze the current Bitcoin price trend and potential support and resistance levels.
Despite encountering resistance at $48,800, Bitcoin managed to break through and climb higher. The price even reached a new multi-week high near $50,339 before entering a consolidation phase. Although there was a minor decline below $50,000, BTC remains above the 23.6% Fibonacci retracement level of the recent rally.
Bitcoin is currently trading above $48,800 and the 100 hourly Simple Moving Average (SMA), indicating a positive market sentiment. Furthermore, a short-term rising channel is forming, with support at $49,750 on the hourly chart of the BTC/USD pair. However, if BTC fails to maintain its upward momentum, a downside correction could be imminent.
Potential Resistance Levels
Bitcoin faces immediate resistance near the $50,250 level. If it manages to break this level, the next key resistance could be at $50,400, which might trigger further upward movement. In the bullish scenario, BTC could potentially target the $51,200 and $52,000 resistance levels. Further resistance might be encountered near $53,000.
If Bitcoin fails to surpass the $50,250 resistance zone, a downside correction could be in the cards. The immediate support lies near the $49,750 level or the lower channel trend line. A break below this support could open the doors for a deeper correction. The first major support to watch out for is at $49,000, which coincides with the 50% Fibonacci retracement level. A close below $49,000 might indicate bearish momentum and push the price towards the $47,650 support level.
The hourly MACD (Moving Average Convergence Divergence) is showing signs of losing bullish momentum. However, the MACD is still in the bullish zone, suggesting some resilience by the bulls. The RSI (Relative Strength Index) for BTC/USD is currently above the 50 level, indicating a slightly bullish bias.
While Bitcoin has experienced a notable rally, the market is showing signs of a potential downside correction. BTC’s ability to maintain its bullish momentum and break through the resistance levels will determine its future price movement. Traders should be cautious and conduct thorough research before making any investment decisions, as investing in cryptocurrencies carries inherent risks.
