TA: Bitcoin Steadies Above $50K, Why Bulls Aim Fresh Monthly High

Bitcoin is holding gains above the $50,000 resistance against the US Dollar. BTC is showing positive signs and there could be more gains above $52,000.

• Bitcoin settled above the $50,000 resistance zone and dips remained supported.
• The price is trading well above $50,000 and the 100 hourly simple moving average.
• There was a break above a key bearish trend line with resistance near $50,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is gaining pace and might soon clear the $51,200 resistance zone in the near term.

Bitcoin Price Gains Pace

Bitcoin price started a minor downside correction from the $51,800 zone. BTC declined below the $51,200 level to move into a short-term bearish zone.

There was a break below the 50% Fib retracement level of the upward move increase from the $48,105 swing low to $51,800 high. There was even a spike below the $50,000 level and the 100 hourly simple moving average.

However, dips remained limited below $50,000. The price tested the 61.8% Fib retracement level of the upward move increase from the $48,105 swing low to $51,800 high. It formed a base and started a fresh increase above the $50,000 level.

Bitcoin is trading well above $50,000 and the 100 hourly simple moving average. There was a break above a key bearish trend line with resistance near $50,400 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

An immediate resistance on the upside is near the $51,200 level. The next key resistance could be $51,500. A clear move above the $51,500 resistance zone could start a fresh increase. The next major stop for the bulls may possibly be near the $53,500 level.

Dips Limited In BTC?

If bitcoin fails to clear the $51,200 resistance zone, it could start another downside correction. An immediate support on the downside is near the $50,200 level.

The first major support is near $50,000. A downside break below the $50,000 level could push the price towards the $49,400 support. Any more losses may possibly push the price towards the $48,500 support zone.

Technical indicators:

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

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

Major Support Levels – $50,200, followed by $50,000.

Major Resistance Levels – $51,500, $52,000 and $53,500.

by Aayush Jindal on December 27, 2021 at 08:38AM