Bitcoin price is showing some positive signs above $ 48,000 against the US dollar. BTC is likely to see a sharp spike if it’s above $ 50,000 and 100 SMA (H4).
- Bitcoin stayed well bid above $ 43,000 and $ 45,000 support levels.
- The price is now approaching the resistance of $ 50,000 and the simple moving average of 100 (4 hours).
- A major contraction triangle is forming on the 4-hour chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 50,200.
- The pair is likely to see a sharp rise when it hits the $ 50,000 and $ 50,500 resistance levels.
Bitcoin price is gaining momentum
Last week, Bitcoin price was corrected against the US dollar below the USD 48,000 support zone. The BTC / USD pair even broke the USD 47,000 level and was below the simple moving average of 100 (4 hours).
However, the bulls were able to protect a downside break below the $ 46,000 area. A low was formed near $ 46,350 before the price rose again. It solved the $ 47,000 and $ 48,000 resistance levels. There was also a break above the 50% Fib retracement level of the downward move from the $ 52,640 swing high to the $ 46,350 low.
Source: BTCUSD on TradingView.com
It is now nearing the USD 50,000 resistance and 100 simple moving average (4 hours). A major contraction triangle is also forming on the 4-hour chart of the BTC / USD pair with resistance near USD 50,200.
The triangle resistance is close to the 61.8% Fib retracement level of the downward move from the high of $ 52,640 to the low of $ 46,350. A sharp break above the triangular resistance could open the doors for a renewed spike to the $ 52,000 and $ 53,000 resistance levels. The next big hurdle for Bitcoin could be at $ 55,000.
Limited disadvantages with BTC?
If Bitcoin fails to hit the $ 50,000 and $ 50,500 resistance levels, lower corrections may occur. The first major support is near the $ 48,800 level.
The main support is near the lower triangle trendline and at $ 48,000. A sharp break below the triangle support zone could pave the way for a move towards the USD 45.00 support zone in the short term.
Technical indicators
4 hours MACD – The MACD for BTC / USD is showing positive signs in the bullish zone.
4 hour RSI (Relative Strength Index) – The RSI for BTC / USD is now well above the 50 level.
Main Support Tier – $ 48,000
Main Resistance Level – $ 50,000
