Home Cryptocurrency For Beginners Bitcoin Holds Ground, Why 100 SMA Is The Key For Fresh Increase

Bitcoin Holds Ground, Why 100 SMA Is The Key For Fresh Increase

by Coinwidow
90 views


Bitcoin remained stable above the $46,000 support zone against the US Dollar. BTC could start a steady increase if there is a clear move above the 100 hourly SMA.

  • Bitcoin is forming a base above the $46,400 and $46,000 support levels.
  • The price is still trading below $48,500 and the 100 hourly simple moving average.
  • There was a break above a key bearish trend line with resistance near $47,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must clear $49,200 and the 100 hourly SMA for a steady increase.

Bitcoin Price Forms Base

Bitcoin price declined towards the $46,000 support level. BTC seems to be forming a base above the $46,000 and $46,400 levels. A low was formed near $45,759 before the price started a recovery wave.

There was a move above the $47,200 and $47,500 resistance levels. Besides, there was a break above a key bearish trend line with resistance near $47,200 on the hourly chart of the BTC/USD pair. However, the pair still trading below $48,500 and the 100 hourly simple moving average.

It faced a strong resistance near the $48,250 zone and the 100 hourly SMA. Bitcoin also struggled near the 50% Fib retracement level of the downward move from the $50,785 swing high to $45,759 low.

An immediate resistance on the upside is near the $48,100 level. The first major resistance is near the $48,250 level. The next key resistance could be $48,800. It is near the 61.8% Fib retracement level of the downward move from the $50,785 swing high to $45,759 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

A proper break above the $48,800 resistance could open the doors for more upsides. The next key resistance is near the $50,000 level, above which the price may possibly gain momentum.

Dips Limited In BTC?

If bitcoin fails to clear the $48,880 resistance zone, it could start a downside correction. An immediate support on the downside is near the $47,500 level.

The first major support is now forming near the $47,000 level. The main support is now near $46,000. A downside break below the $46,000 support may perhaps accelerate losses in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bullish zone.

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

Major Support Levels – $47,200, followed by $46,000.

Major Resistance Levels – $48,250, $48,800 and $50,000.

Related Articles