Bitcoin Bulls Keeps Pushing, Why Rally Isn’t Over Yet

Bitcoin Bulls Keeps Pushing, Why Rally Isn’t Over Yet

Research
September 18, 2021 by mvp00
16
Bitcoin price remains well supported above the $47,000 zone against the US Dollar. BTC must clear $48,500 to start a decent increase towards the $50,000 level. Bitcoin corrected lower after it failed to clear the $48,500 resistance zone. The price is still trading above $47,000 and the 100 hourly simple moving average. There was a
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Bitcoin price remains well supported above the $47,000 zone against the US Dollar. BTC must clear $48,500 to start a decent increase towards the $50,000 level.

  • Bitcoin corrected lower after it failed to clear the $48,500 resistance zone.
  • The price is still trading above $47,000 and the 100 hourly simple moving average.
  • There was a break above a short-term declining channel with resistance near $47,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue higher towards the $50,000 level if it breaks the $48,500 resistance.

Bitcoin Price Remains Supported

Bitcoin price gained pace after it cleared the $47,000 resistance level. BTC even surpassed the $48,000 resistance zone and the 100 hourly simple moving average.

However, the bears were active near the $48,500 zone. The price traded as high as $48,481 before there was a downside correction. There was a break below the $48,000 and $47,800 levels. The price even broke the 23.6% Fib retracement level of the upward move from the $43,374 swing low to $48,481 high.

Bitcoin found support near the $47,200 level and there was no downside continuation. As a result, there was a fresh increase above the $47,500 level.

Moreover, there was a break above a short-term declining channel with resistance near $47,800 on the hourly chart of the BTC/USD pair. An immediate resistance on the upside is near the $48,000 level. The first major resistance is now near the $48,500 level.

Bitcoin Price

Source: BTCUSD on TradingView.com

To start another increase, the price must clear the $48,500 resistance. If there is a clear break above $48,500, the price could easily rise towards the key $50,000 resistance in the coming sessions.

Dips Limited In BTC?

If bitcoin fails to clear the $48,000 resistance zone, it could start another downside correction. An immediate support on the downside is near the $47,600 level and broken channel trend line. If the price breaks the $47,600 level, it could test the $47,200 support level.

The next major support is near the $46,000 zone or the 100 hourly simple moving average. Besides, 50% Fib retracement level of the upward move from the $43,374 swing low to $48,481 high is also near $45,900 to provide support.

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 now above the 50 level.

Major Support Levels – $47,200, followed by $47,000.

Major Resistance Levels – $48,000, $48,500 and $50,000.

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