Bitcoin price is struggling to clear resistance at $52,000. If BTC breaks the $50,500 support zone, it could begin a significant downward correction.
- Bitcoin price is still struggling to break the $52,000 resistance zone.
- The price is trading below $51,600 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), a break has occurred below the connecting bullish trendline with support at $51,500.
- The pair may extend its current downtrend and revisit the $50,500 support level.
Bitcoin price faces resistance at $52,000
Bitcoin price retested the $50,500 support zone and even surged to $50,400. However, the bulls remained active near $50,450. A low was formed at $50,456 and the price recovered above $51,200.
The bears are currently defending against an upside breakout above the $52,000 resistance area. The high was reached at $51,936 and the price is currently falling. On the hourly chart of the BTC/USD pair, a break occurred below the connecting bullish trendline with support at $51,500.
The break occurred below the 23.6% Fib retracement level of the rise from the $50,456 swing low to the $51,936 high. Bitcoin is currently trading below $51,600 and the 100-hour simple moving average.
Source: TradingView.com BTCUSD
Immediate resistance is near the $51,600 level. The next major resistance could be $52,000, above which the price may rise towards the $52,500 resistance area. Key resistance is currently near the $53,000 level. A clear break above the $53,000 resistance may lead the price to move towards the $53,500 resistance. The next resistance could be near the $54,200 level.
Another drop in BTC?
If Bitcoin fails to rise above the $51,600 resistance zone, it could begin another near-term downtrend. Immediate support on the downside is near the $51,300 level and 100-hourly SMA.
The first major support is the 50% Fib retracement level at $51,100 or the rise from the $50,456 swing low to the $51,936 high. If it closes below $51,100, the price could begin a significant downtrend. If indicated, the price may decline towards the $50,500 support zone, below which the price may test the $50,000 level.
Technical indicators:
Hourly MACD – MACD is now picking up speed in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $51,100, then $50,500.
Key resistance levels – $51,600, $51,800 and $52,000.
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