Bitcoin price tested the $47,000 support zone before starting a recovery against the US Dollar. BTC is showing positive signs, but it might face hurdles near $53,500.
Bitcoin is rising and it is trading nicely above the $50,000 pivot level.
The price is now trading well above $51,000 and the 100 hourly simple moving average.
There was a break above a major bearish trend line with resistance near $51,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to rally if there is a clear break above the $53,500 resistance zone.
Bitcoin Price is Recovering
Bitcoin declined again below the $48,500 support level. BTC even spiked below the $47,500 low and it traded to a new swing low near $47,000.
The bulls appeared near the $47,000 zone and the price started a steady recovery. There was a break above the $50,000 resistance level. The price climbed above the 61.8% Fib retracement level of the last key drop from the $51,050 high to $47,000 swing low.
There was a break above a major bearish trend line with resistance near $51,500 on the hourly chart of the BTC/USD pair. The pair is now trading well above $51,000 and the 100 hourly simple moving average.
The current price action is positive and the price is now trading nicely above $52,000. On the upside, there is a major resistance waiting near the $53,200 and $53,500 levels. The 1.618 Fib extension level of the last key drop from the $51,050 high to $47,000 swing low is also near $53,500.
Source: BTCUSD on TradingView.com
A successful break and close above the $53,500 level could spark a strong upward move. In the stated case, the price is likely to rally above the $54,500 and $55,000 levels in the near term.
Dips Limited in BTC?
If bitcoin fails to clear the $53,200 and $53,500 resistance levels, it could start a downside correction. An immediate support on the downside is near the $51,500 level.
The first key support is near the $51,000 level and the 100 hourly simple moving average. A fresh close below the 100 hourly simple moving average is likely to open the doors for a drop towards the $48,500 support.
Technical indicators:
Hourly MACD – The MACD is slowly gaining strength in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $51,500, followed by $51,000.
Major Resistance Levels – $53,200, $53,500 and $55,000.
I have worked in the financial sector for over 10 years and have a keen interest in cryptocurrency. I have been writing about crypto for the past two years and have become one of the most respected authors in the space. I have a deep understanding of how this new asset class works and am able to provide insights that are both interesting and useful to my readers.
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