- Bitcoin declined heavily below $50,000 and it even tested the $45,000 support zone.
- The price is recovering towards $50,000 and it is well below the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $51,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The previous support near $51,800 and $52,000 could act as a strong barrier.
Bitcoin Price is Approaching Hurdles
There were heavy losses in bitcoin below the $52,000 and $50,000 support levels. BTC even tested the $45,000 support zone and it settled well below the 100 hourly simple moving average.
A low is formed near $44,960 and the price is currently recovering losses. It corrected above the $46,500 and $48,000 resistance levels. There was a break above the 23.6% Fib retracement level of the downward move from the $58,400 swing high to $44,960 low.
It is now testing the $50,000 resistance, but it is still well below the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $51,200 on the hourly chart of the BTC/USD pair. The first major resistance is now forming near the $51,800 level.
The 50% Fib retracement level of the downward move from the $58,400 swing high to $44,960 low is also near $51,800. A close above the $51,800 and $52,000 resistance levels is must for a fresh increase towards $55,000 in the near term.
Another Dip in BTC?
If bitcoin fails to continue higher above the trend line resistance and $51,800, there are chances of another dip. An initial support on the downside is near the $48,000 level.
The main support is now forming near the $45,000 zone. If there is a clear break below the $45,000 support, the price could dive 8%-10% in the near term. The next major support sits near the $40,000 level.
