02 Mar TA: Bitcoin Revisits $50K, Why BTC Could Still Struggle Near $51K
Bitcoin price started a strong recovery from $53,000 against the US Dollar. BTC tested $50,000 and it could face a strong selling interest near $51K and $52K.
- Bitcoin started a decent upward move above the $48,000 resistance zone.
- The price is now trading well above $48,000 and the 100 hourly simple moving average.
- There was a break above a major contracting triangle with resistance near $47,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could climb above $50,000 again, but it is likely to face sellers near $51,000 and $52,000.
Bitcoin Price is Recovering Losses
After testing the $43,000 zone, bitcoin started a decent recovery wave. BTC cleared the $45,000 and $46,500 resistance levels. The bulls gained strength, resulting in a move above the $47,000 level and the 100 hourly simple moving average.
There was also a break above a major contracting triangle with resistance near $47,500 on the hourly chart of the BTC/USD pair. The pair broke the $48,000 resistance and it even spiked above the $50,000 level.
Source: BTCUSD on TradingView.com
A high is formed near $50,190 and the price is currently consolidating gains. An initial support is near the $48,500 level. It is close to the 23.6% Fib retracement level of the recent wave from the $43,064 low to $50,190 high.
On the upside, the price is likely to face a strong resistance near the $51,000 and $52,000 levels. A successful daily close above the $52,000 level is must for upside continuation. In the stated case, bitcoin price might revisit the $55,000 resistance in the near term.
Fresh Dip in BTC?
If bitcoin fails to continue higher above the $50,000 and $51,000 resistance levels, there could be a fresh decline. The first key support on the downside is near the $48,000 level.
The next major support is near the $46,500 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent wave from the $43,064 low to $50,190 high. If the bulls fail to protect the $46,500 support zone, there is a risk of a sharp decline towards the $43,000 support zone.
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $48,000, followed by $46,500.
Major Resistance Levels – $50,000, $51,000 and $52,000.