Bitcoin failed to break past the $52,000 resistance zone and started a decline. NewsBTC’s Aayush Jindal evaluates the latest situation in Bitcoin.
Bitcoin Forms Bearish Pattern
Bitcoin formed a top around $52.111 and started a fresh decline from there. There was a break below the $51,200 and $50,500 support levels. There was a break below a key bullish trend line with support near $51,200 on the hourly chart of the BTC/USD pair.
The pair traded below the 50% Fib retracement level of the rise from the $49,477 high to $52.111 high. Bitcoin is currently trading below $50,000 and the 100 hourly simple moving average. Also, it is 76% of the rally from $49,477 to $52.111. It trades below the 4 Fib retracement level. The first major support is near $49,000.
A downside break below the $49,000 level could push the price towards the $48,800 support. Any more losses could likely lead the price towards the $47,500 support zone.
Will Bitcoin Rebound?
Jindal thinks that if Bitcoin manages to stay above the $49,500 support zone, it could start a decent increase. An immediate resistance on the upside is near the $50,000 level. The next key resistance could be $50,800 and the 100 hourly SMA. A clear move above the $50,800 resistance zone could start a fresh increase. The next big stop for the bulls is likely near the $51,800 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
- Main Support Levels – 49.500 then $47.500
- Main Resistance Levels – $50,000, $50,800 and $51,800