Bitcoin Price Consolidates Below Resistance, Are Dips Still Supported?

Bitcoin price is correcting gains from the $52,500 resistance. BTC must stay above the $50,500 support to remain in a bullish zone this month.

• Bitcoin price is struggling to clear the $52,800 resistance zone.
• The price is trading below $52,200 and the 100 hourly Simple moving average.
• There was a break below a key bullish trend line with support at $52,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase unless there is a clear move below the $50,500 support.

Bitcoin Price Faces Hurdles

Bitcoin price made another attempt to gain strength above the $52,000 resistance zone. BTC broke the $52,200 level, but the bears were still active near the $52,500 level.

A high was formed near $52,475 and the price is now correcting gains. There was a move below the $52,000 level. The pair traded below the 50% Fib retracement level of the upward move from the $50,581 swing low to the $52,475 high.

Besides, there was a break below a key bullish trend line with support at $52,200 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $52,000 and the 100 hourly Simple moving average.

Source: BTCUSD on TradingView.com

Immediate resistance is near the $52,000 level. The next key resistance could be $52,200, above which the price could rise toward the $52,500 resistance zone. The main resistance is still near the $52,800 level. A clear move above the $52,800 resistance could send the price toward the $53,500 resistance. The next resistance could be near the $55,000 level.

More Losses In BTC?

If Bitcoin fails to rise above the $52,200 resistance zone, it could start another decline in the near term. Immediate support on the downside is near the $51,300 level and the 61.8% Fib retracement level of the upward move from the $50,581 swing low to the $52,475 high.

The first major support is $51,000. If there is a close below $51,000, the price could gain bearish momentum. In the stated case, the price could decline toward the $50,500 support zone, below which the price might turn bearish in the short term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

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

Major Support Levels – $51,300, followed by $50,500.

Major Resistance Levels – $52,200, $52,500, and $52,800.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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