Why Bitcoin Becomes Attractive On Dips Over $ 50,000

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The price of Bitcoin gained momentum and broke through the $ 50,000 resistance against the US dollar. BTC could correct to the downside, but the declines could remain limited below $ 50,000.

Bitcoin climbed above resistance levels of $ 49,500 and $ 50,000. The price is now trading above $ 50,000 and the 100 hour simple moving average. A key bullish trendline is forming with support near $ 49,500 on the hourly chart of the BTC / USD pair (Kraken data feed). The pair could correct to the downside, but it could find support near $ 50,000 or $ 49,500. Bitcoin price gaining momentum

The price of Bitcoin remained in an uptrend and extended its rise above the resistance zone of $ 49,500. BTC even broke through the resistance level of $ 50,000 and settled above the 100 hour simple moving average.

The bulls stayed in action and they were able to push the price above the $ 51,000 level. It traded close to $ 52,000 and a top is forming near $ 51,888. Price is now consolidating gains above the $ 51,000 level.

Immediate downside support is near the $ 50,800 level. It is near the 23.6% Fib retracement level of the recent increase, dropping from the low of $ 46,895 to $ 51,888. A key bullish trendline is also forming with support near $ 49,500 on the hourly chart of the BTC / USD pair.

Source: BTCUSD on TradingView.com

On the upside, initial resistance is near the $ 51,500 level. The first major resistance is near the $ 52,000 level, above which the price may start to rise again. The next major resistance for the bulls could be near the $ 53,200 level. Further gains could set the tone for a move towards the $ 55,000 level.

Dips supported in BTC?

If bitcoin fails to break through the $ 52,000 resistance zone, it could initiate a further downward correction. Immediate downside support is near the $ 50,800 level.

The first major support is now forming near the $ 50,000 level and the trendline. It is near the 50% Fib retracement level of the recent increase, dropping from the low of $ 46,895 to $ 51,888. If there is a breakout below the trendline support, the price could move down towards the $ 49,000 level and the 100 hour SMA.

Technical indicators:

Hourly MACD The MACD is slowly losing steam in the bullish zone.

Hourly RSI (Relative Strength Index) The RSI for BTC / USD is well above the 50 level.

Major support levels $ 50,800, followed by $ 50,000.

Major resistance levels $ 51,500, $ 52,000 and $ 53,200.

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