The price of Bitcoin extends its gains.
At last, the bitcoin price has been able to clear the $50,000 resistance zone. BTC climbed to over $50,200 and $50,500 levels. It then traded to a new all-time high at $50,600 before correcting to a lower price.
There has been a sharp correction below the $50,000 level. The price then spiked below the $49,000 support level. But the bulls have been active near the $48,000 zone and the 100 hourly simple moving average. A low is then formed near $47,819 and the price is still rising.
Bitcoin is now trading above the 50% Fib retracement level of the downward correction from the $50,600 swing high to $47,819 low. Also, there has been a break above a key contracting triangle with resistance around $49,500 on the hourly chart of the BTC/USD pair.
The price now trades nicely around $50,000 and it is well over the 100 hourly simple moving average. It attempts the 76.4% Fib retracement level of the downward correction from the $50,600 swing high to $47,819 low.
It looks like the price will continue to soar higher to the $50,600 high. Any more gains could easily drive the price above the $51,000 level. The next key resistance will be at $52,000.
Will there be a dip in BTC?
If bitcoin fails to settle over the $50,000 and $50,200 levels, there can be a downside correction. An initial support is around the $49,000 level and the broken triangle trend line.
A downside break below the $49,500 level might lead the price to the $48,000 support. The 100 hourly simple moving average also sits near $48,000 to provide support.