- Bitcoin price started an upside correction from the $42,800 zone against the US Dollar.
- The price is now trading above $47,000 and the 55 simple moving average (4-hours).
- There was a break above a major declining channel with resistance near $46,550 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair must settle above $47,450 to continue higher towards $50,000 in the near term.
Bitcoin price is recovering higher above $47,000 against the US Dollar. BTC could extend gains if there is a clear break above the $48,000 level.
Bitcoin Price Analysis
Bitcoin price started a major decline from well above the $52,000 zone. BTC broke the $48,000 and $45,000 support levels to enter a bearish zone.
The price even spiked below $43,000 and traded as low as $42,830. Recently, the price started a fresh increase above the $45,000 resistance level. It cleared the 23.6% Fib retracement level of the main decline from the $52,944 swing high to $42,830 low.
There was also a break above a major declining channel with resistance near $46,550 on the 4-hours chart of the BTC/USD pair. The pair is now trading above $47,000 and the 55 simple moving average (4-hours).
On the upside, an initial resistance is near the $47,450 level. The first major resistance is near the $47,900 level or the 50% Fib retracement level of the main decline from the $52,944 swing high to $42,830 low. A close above the $48,000 zone is needed for a fresh increase. In the stated case, the price is likely to rise steadily towards the $5,000 level.
An immediate support on the downside is near the $47,000 level. The first key support is near the $46,500 level. If the price fails to stay above $46,500, it could revisit the $46,000 support zone. Any more losses could open the doors for a move towards the $45,000 support zone.
Looking at the chart, bitcoin price is clearly trading above $47,000 and the 55 simple moving average (4-hours). Overall, the price must settle above $47,450 to continue higher towards $50,000 in the near term.
Technical indicators
4 hours MACD – The MACD is now gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is now well above the 50 level.
Key Support Levels – $46,500 and $46,000.
Key Resistance Levels – $47,450, $48,000 and $50,000.
