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Bitcoin Price Analysis: BTC Faces Major Hurdle, Dips Limited

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  • Bitcoin price started a fresh increase after testing the $47,500 support against the US Dollar.
  • The price is now trading above $52,000, but it is struggling near the 55 simple moving average (4-hours).
  • There was a break below a major rising channel with support near $55,800 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair is likely to start a fresh decline if it fails to clear the $56,000 resistance zone in the near term.

Bitcoin price is attempting an upside correction above $52,000 against the US Dollar. BTC must surpass $56,000 and $56,450 to move into a positive zone.

Bitcoin Price Analysis

After a steady decline, bitcoin price found support near the $47,500 zone against the US Dollar. BTC formed a support base and it started a fresh increase above the $52,000 resistance zone.

There was also a break above the $55,000 resistance level and the 55 simple moving average (4-hours). However, the price struggled near the $59,000 zone. A high was formed near $59,042 before the price started a fresh decline.

There was a break below the $56,000 support zone and the 55 simple moving average (4-hours). There was also a break below a major rising channel with support near $55,800 on the 4-hours chart of the BTC/USD pair.

The pair traded as low as $52,972 and it is now correcting losses. It climbed above the 23.6% Fib retracement level of the recent decline from the $59,042 swing high to $52,972 low. It is now facing a major resistance near the previous support at $56,000 and the 55 simple moving average (4-hours).

The 50% Fib retracement level of the recent decline from the $59,042 swing high to $52,972 low is also near the $56,000 zone. If there is an upside break above the $56,000 resistance zone, the price is likely to accelerate higher in the near term.

The next major hurdle is near the $59,000 level, above which the price is likely to climb higher towards the $60,000 and $62,000 levels. On the downside, the $54,000 level is a decent support. The main breakdown support is near the $51,250 level, below which there could be a sharp decline towards $47,000.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading above $52,000, but it is struggling near the 55 simple moving average (4-hours). Overall, the price is likely to start a fresh decline if it fails to clear the $56,000 resistance zone.

Technical indicators

4 hours MACD – The MACD is slowly gaining momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI is well below the 50 level.

Key Support Levels – $54,000 and $51,250.

Key Resistance Levels – $56,000, $59,000 and $60,000.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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