Bitcoin Rejected Above $ 50,000, Why BTC Could Correct Gains

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The price of Bitcoin did not stay above $ 50,000 and was corrected down against the US dollar. BTC could correct down to the near-term $ 48,250 support.

Bitcoin tested the resistance level of $ 50,500 before correcting lower. The price is now trading near $ 49,000 and the 100 hour simple moving average. There was a break below a key uptrend line with support near $ 49,500 on the hourly chart of the BTC / USD pair (Kraken data feed). The pair could correct down to $ 48,250 or even $ 47,300 in the short term. Bitcoin price corrects downward

Bitcoin’s price traded above the $ 50,000 resistance, but there was no continuation to the upside. BTC tested the resistance level of $ 50,500 and recently started a downward correction.

There was a break below the $ 50,000 and $ 49,800 levels. The bears pushed the price below the 50% fiber retracement level of the bullish movement from the low of $ 48,098 to $ 50,506. There was also a break below a key uptrend line with support near $ 49,500 on the hourly chart for the BTC / USD pair.

Bitcoin is now trading near $ 49,000 and the 100-hour simple moving average. The 61.8% Fib retracement level of the move up from the $ 48,098 low to $ 50,506 appears to be acting as support.

Source: BTCUSD on TradingView.com

If there is a break down below the 100 hour simple moving average, the price may continue to fall. Immediate support is near $ 48,500. The next major support is near the $ 48,250 level. Further losses could open the door for a move towards the near-term $ 47,300 support area.

New increase in BTC?

If bitcoin stays above the $ 48,250 support area, it could start a further rise. On the upside, immediate resistance is near the $ 49,500 level.

The first key resistance is near the $ 50,000 level, above which the bulls could aim for a retest of $ 50,500. Any additional gain could set the stage for a larger raise above $ 51,000. The next major stop for the bulls could be near the $ 52,000 level in the coming days.

Technical indicators:

Hourly MACD The MACD accelerates in a bearish zone.

Hourly RSI (Relative Strength Index) RSI for BTC / USD is now below level 50.

Major support levels $ 48,250, followed by $ 47,300.

Major resistance levels $ 49,500, $ 50,000 and $ 50,500.

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