TA: Bitcoin Breaks $50K, Why BTC Could Continue To Gain Momentum
Bitcoin price started a steady increase and it surpassed $50,000 against the US Dollar. BTC is likely to remain well bid and it might even clear $50,300
- Bitcoin started a decent increase above the $48,000 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 $49,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could accelerate further higher if it clears the $50,500 resistance zone in the near term.
Bitcoin Price Gains Strength
Bitcoin price remained well bid above the $46,000 support zone. BTC formed a base above $46,000 and it started a fresh increase. There was a clear break above the $48,000 resistance zone and the 100 hourly simple moving average.
The bulls gained strength and were able to push the price above the main $50,000 resistance. It traded as high as $50,300 and it is now consolidating gains.
An immediate support is near the $49,750. It is close to the 23.6% Fib retracement level of the recent increase from the $48,033 swing low to $50,306 high. Bitcoin price is now trading well above $48,000 and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
There is also a major bullish trend line forming with support near $49,200 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $50,300 level. The first key resistance is near the $50,500 level, above which the bulls are likely to aim a larger increase. The next major stop for the bulls could be $52,000.
Dips Supported in BTC?
If bitcoin fails to climb above the $50,300 and $50,500 resistance levels, it could start a downside correction. An initial support on the downside is near the $49,750 level.
The first major support is now near the $49,200 zone. It is near the trend line and the 50% Fib retracement level of the recent increase from the $48,033 swing low to $50,306 high. If there is a clear break below the trend line support, the price could revisit the $48,000 support zone.
Hourly MACD – The MACD is gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.
Major Support Levels – $49,200, followed by $48,000.
Major Resistance Levels – $50,300, $50,500 and $52,000.