Bitcoin Settles Below $50K, What Could Initiate A Fresh Rally
Bitcoin declined heavily and it even spiked towards $40K against the US Dollar. BTC is recovering, but it must clear $50K for a steady increase in the near term.
Bitcoin is attempting a recovery wave above the $47,000 and $47,500 levels.
The price is now trading below $50,000 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $48,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a decent upward move if there is a clear break above $50,000.
Bitcoin price failed to stay above the $52,000 and $50,000 support levels. BTC declined heavily and broke many important supports near the $48,000 level.
It even dived below the $45,000 level and traded close to the $40,000 level. A low was formed near $40,150 and the price is now recovering losses. It climbed above the $45,000 resistance zone. There was a break above the 50% Fib retracement level of the recent decline from the $57,688 swing high to $40,150 low.
It is now trading below $50,000 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $48,600 on the hourly chart of the BTC/USD pair.