Bitcoin price extended its upward move to $ 49,700 before correcting further against the US Dollar. BTC dropped above $ 2,000. However, it is likely to remain stable above $ 45,000. According to the technical analysis of NewsBTC's Aayush Jindal:
- Bitcoin initiated a drastic downside correction after setting a new all-time high around $ 49,700.
- The price is currently trading above the $ 46,000 support, but below the 100 hourly simple moving average.
- There is a key bullish trend line formed with support near $ 46,000 on the hourly chart of the BTC / USD pair ( based on Kraken data).
- As long as the pair trades above $ 46,000 and above $ 45,000, it is likely to return.
Bitcoin (BTC) Lives Correction
There was an upward increase in bitcoin price above the $ 49,200 level. BTC even traded at a new all-time high of close to $ 49,700 before facing strong selling interest.
The price dropped sharply below the $ 48,000 and $ 47,000 levels. Bitcoin traded under a major contracting triangle formation with support near $ 47,600 on the hourly chart. There was also a break below the $ 46,800 support level and the 100 hourly simple moving average.
The price even fell below $ 46,326. However, it remained stable above the 1.236 Fib extension level of the upward move from $ 46,326 to $ 49,708.
Also, there is a key bullish trend line formed with support near $ 46,000 on the hourly chart of the BTC / USD pair. If there is a downside break below the trendline support, the price could drop towards the $ 45,000 support. The next major support is near the $ 44,250 level. This is near the 1.618 Fib extension level of the upward move from $ 46,326 to $ 49,708.
Will Bitcoin (BTC) Soar?
If the Bitcoin trendline stays above its support, it could start a new increase above $ 46,800. The first critical resistance is near the $ 47,000 level and the 100 hourly simple moving average.
A successful break above the $ 47,000 resistance level and a close above the 100 hourly SMA could trigger a new increase. The next critical resistance is located near the $ 48,000 level.
Technical indicators
- Hourly MACD - The MACD is slowly gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) - The RSI for BTC / USD is currently below the 50 level.
- Major Support Levels - $ 46,000 followed by $ 45,000
- Major Resistance Levels - $ 47,000, $ 47,400 and $ 48,000
