Why Bitcoin Price Could Rally To New ATH Above $50K

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Bitcoin price remained in a bullish zone above the $45,000 support against the US Dollar. BTC is eyeing a fresh rally above the $48,000 and $50,000 resistance levels in the near term.

  • Bitcoin climbed above the $48,000 resistance, but it struggled to continue higher towards $50,000.

  • The price is trading nicely above the $45,000 level and the 100 simple moving average (4-hours).

  • There is a major bullish trend line forming with support near $46,000 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).

  • The pair could start a strong rally if it manages to clear the $48,000 and $48,500 resistance levels.

Bitcoin Price is Eyeing More Upsides

This past week, bitcoin price made an attempt to test the $50,000 level against the US Dollar. The BTC/USD pair broke the $48,000 resistance, but there was a lack in momentum.

A new all-time high was formed near $48,700 before the price started a downside correction. There was a break below the $47,000 support. The price traded below the 23.6% Fib retracement level of the upward move from the $43,773 swing low to $48,700 high.

Bitcoin price is now trading nicely above the $45,000 level and the 100 simple moving average (4-hours). On the downside, there is a decent support forming near the $46,000 level.

There is also a major bullish trend line forming with support near $46,000 on the 4-hours chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the upward move from the $43,773 swing low to $48,700 high.

On the upside, the $48,000 and $48,500 levels are important hurdles. A clear break above the $48,000 level is likely to increase the chances of a surge above the $50,000 level in the coming sessions.

Dips Supported in BTC?

If bitcoin struggles to clear the $48,000 resistance level, there are chances of a downside correction. The first major support is near the trend line and $46,000.

The next major support is near the $45,000 level. If there is a clear break and close below the $45,000 support, the price could decline 5%-10%. The next major support on the downside is near the $41,000 level.

Technical indicators

4 hours MACD – The MACD for BTC/USD is likely to gain strength in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.

Major Support Level – $46,000

Major Resistance Level – $48,000

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