TA: Bitcoin Attempts Fresh Increase, Why 100 SMA Is The Key
Bitcoin price found support near $47,150 and started a fresh increase against the US Dollar. BTC must settle above the 100 hourly SMA to continue higher.
Bitcoin extended its decline and tested the $47,200 support zone.
The price is now trading near $48,800 and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $48,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could extend its increase if there is a clear break above $49,200 and the 100 hourly SMA.
Bitcoin Price Regains Strength
Bitcoin price started a steady decline below the $48,000 support. BTC even extended its decline below $47,500, but the bulls were active near $47,200.
A low was formed near $47,165 and the price started a fresh increase. It broke the $48,000 and $48,500 resistance levels. There was a break above the 50% Fib retracement level of the downward move from the $50,520 swing high to $47,165 low.
Besides, there was a break above a key bearish trend line with resistance near $48,850 on the hourly chart of the BTC/USD pair. The pair even tested the $49,200 resistance zone.
Bitcoin is now trading near $48,800 and the 100 hourly simple moving average. The first major resistance is near the $49,200 level. It is close to the 61.8% Fib retracement level of the downward move from the $50,520 swing high to $47,165 low.
Source: BTCUSD on TradingView.com
A clear break above the $49,200 resistance and a close above the 100 hourly SMA could open the doors for a steady increase. The next major stop for the bulls could be $50,000.
Fresh Decline in BTC?
If bitcoin fails to climb above the $49,200 resistance, it could start a fresh increase. On the downside, an immediate support is near the $48,500 level.
The first key support is near the $48,000 level. If there is a downside break below the $48,000 level, the price could continue to move down. The next major support is near the $47,200 level. Any more losses could open the doors for a move towards the $46,500 support zone in the near term.
Hourly MACD – The MACD is losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $48,500, followed by $48,000.
Major Resistance Levels – $49,000, $49,200 and $50,000.