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TA: Bitcoin Reclaims $50K, Why Rally Isn’t Over Yet

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Bitcoin 17
24
Dec

Bitcoin started a fresh increase above the $50,000 resistance against the US Dollar. BTC is showing positive signs and there could be more gains towards $52,000.

  • Bitcoin gained pace after it broke the $49,500 resistance zone.
  • The price is trading well above $50,000 and the 100 hourly simple moving average.
  • There was a break a key declining channel with resistance near $48,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct lower, but dips might be limited below the $50,000 zone.

Bitcoin Price Gains Momentum

Bitcoin price formed a base and started a fresh increase above the $48,000 level. BTC gained pace for a move above the $48,200 level and the 100 hourly simple moving average.

Besides, there was a break a key declining channel with resistance near $48,800 on the hourly chart of the BTC/USD pair. The pair rallied above the $50,000 resistance zone to move into a positive zone. The bulls were able to push the price above the $50,000 level.

Bitcoin traded as high as $51,500 and currently consolidating gains. It is well above the 23.6% Fib retracement level of the recent increase from the $48,105 swing low to $51,500 high. It is also trading well above $50,000 and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

An immediate resistance on the upside is near the $51,500 level. The next key resistance could be $52,000. A clear move above the $52,000 resistance zone could lift the price further higher. The next major stop for the bulls may possibly be near the $53,200 level.

Dips Limited In BTC?

If bitcoin fails to clear the $51,500 resistance zone, it could start a downside correction. An immediate support on the downside is near the $50,700 level.

The first major support is near $50,000. It is near the 50% Fib retracement level of the recent increase from the $48,105 swing low to $51,500 high. A downside break below the $50,000 level could increase selling pressure in the near term. In the stated case, the price may perhaps decline towards the $48,800 support zone.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.

Major Support Levels – $50,700, followed by $50,000.

Major Resistance Levels – $51,500, $52,000 and $53,200.

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