Bitcoin price extended its upward move towards $49,700 before correcting lower against the US Dollar. BTC dipped more than $2,000, but it is likely to remain stable above $45,000.
- Bitcoin started a sharp downside correction after setting a new all-time high near $49,700.
- The price is trading above the $46,000 support, but it is below the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $46,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to bounce back as long as it is trading above $46,000 and $45,000.
Bitcoin Price is Correcting Gains
There was an upside extension in bitcoin price above the $49,200 level. BTC even traded to a new all-time high near $49,700 before it faced a strong selling interest.
The price declined sharply below the $48,000 and $47,000 levels. Bitcoin traded below a major contracting triangle 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 spiked below the last swing low at $46,326. However, it remained stable above the 1.236 Fib extension level of the upward move from the $46,326 low to $49,708 high.
Source: BTCUSD on TradingView.com
There is also a key bullish trend line forming with support near $46,000 on the hourly chart of the BTC/USD pair. If there is a downside break below the trend line support, the price could decline towards the $45,000 support. The next major support is near the $44,250 level. It is close to the 1.618 Fib extension level of the upward move from the $46,326 low to $49,708 high.
Fresh Increase in BTC?
If bitcoin stays above the trend line support, it could start a fresh increase above $46,800. The first key 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 might spark a fresh increase. The next key resistance sits 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 now below the 50 level.
Major Support Levels – $46,000, followed by $45,000.
Major Resistance Levels – $47,000, $47,400 and $48,000.
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