Bitcoin Corrects Gains, Why Dips Could Be Limited Below $48K
Bitcoin failed to test the $50,000 resistance against the US Dollar. BTC is correcting gains, but dips could be limited below the $47,500 support.
Bitcoin struggled to surpass the $49,500 resistance zone and corrected lower.
The price is trading above $48,000 and the 100 hourly simple moving average.
There was a break below a key rising channel with support near $49,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase if it stays above the $47,500 support zone.
Bitcoin price formed a base and started a fresh increase above the $47,500 level. BTC gained pace for a move above the $48,500 level and the 100 hourly simple moving average.
The upward move was such that the price even spiked above the $49,200 resistance. However, the bulls failed to pump the price towards the $50,000 level. A high was formed near $49,599 and the price started a downside correction.
There was a break below the $49,000 level. Besides, there was a break below a key rising channel with support near $49,000 on the hourly chart of the BTC/USD pair.
The pair traded below the 23.6% Fib retracement level of the upward move from the $45,600 swing low to $45,599 high. Bitcoin tested the $48,000 zone and is currently rising. It is facing resistance near the $48,800 zone.