Bitcoin price fell over $ 10,000 against the US dollar after Elion Musk’s tweet. BTC is now correcting losses, but previous support near USD 52,000 could pose a hurdle.
- Bitcoin saw a sharp drop, well over $ 55,000, and was trading close to $ 45,000
- The price is now trading well below $ 55,000 and the 100-hour simple moving average.
- On the hourly chart of the BTC / USD pair (data feed from Kraken) there was a break below a major rising channel with support near USD 57,000.
- The pair is correcting losses, but the bulls could struggle near $ 52,000 and $ 53,000.
Bitcoin Price Dives 20%
Bitcoin failed to break the $ 58,500 resistance and responded to the downtrend. BTC’s decline was accelerated after Elion Musk tweeted about the Bitcoin mining and refused to accept it as payment.
It sparked a strong bearish move below the $ 52,000 and $ 50,000 support levels. The hourly chart for the BTC / USD pair has paused below a major rising channel with support near USD 57,000. The pair even jumped towards Kraken’s $ 45,000 level. It is now trading well below $ 55,000 and the 100-hour simple moving average.
A low is formed near $ 45,000 and the price is now rebounding higher. It broke the $ 47,000 and $ 48,500 resistance levels. There was also a break above the fib retracement level of 23.6% of the recent decline from a swing high of $ 58,000 to a swing low of $ 45,000.
Source: BTCUSD on TradingView.com
Immediate resistance to the upside is near the $ 51,500 level. It is near the Fib retracement level of 50% of the recent decline from a swing high of $ 58,000 to a swing low of $ 45,000. The main resistance is now forming near the $ 53,000 zone (the previous support). A closing price above $ 52,000 and $ 53,000 is required to start a decent increase.
Fresh drop of BTC?
If Bitcoin fails to remove the $ 52,000 or $ 53,000 resistance, it could cause another drop. Initial downside support is near the USD 48,500 level.
A downside break below the USD 48,500 support zone could restart the decline. The next major support is near the $ 47,400 level. Further losses could require a new test of the $ 45,000 support zone in the short term.
Hourly MACD – The MACD is slowly picking up pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now recovering from the oversold zone.
Major support levels – $ 48,500 followed by $ 47,400.
Main Resistance Levels – $ 51,500, $ 52,000, and $ 53,000.