Bitcoin Corrects, Why Dips Could Be Limited Below $46K

Bitcoin struggled to gain pace above the $48,000 resistance against the US Dollar. BTC is correcting gains, but dips might be limited below $46,000.

• Bitcoin gained pace above $47,500 and traded as high as $48,200.
• The price is trading above $46,500 and the 100 hourly simple moving average.
• There is a key breakout pattern forming with support near $46,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase if it stays above the $46,000 support zone.

Bitcoin Price Remains Supported

Bitcoin price extended increase above the $47,500 resistance zone. BTC even broke the $48,000 resistance zone and traded as high as $48,200.

Recently, there was a downside correction from the $48,200 high. The price declined below the 23.6% Fib retracement level of the upward move from the $44,468 swing low $48,200 high. However, it is still trading above the 100 hourly simple moving average.

There is also a key breakout pattern forming with support near $46,300 on the hourly chart of the BTC/USD pair. On the upside, the price is facing resistance near the $47,600 level.

Source: BTCUSD on TradingView.com

The next major resistance could be near the $47,800 zone and the triangle trend line. A successful break and close above the triangle resistance might push the price towards $48,200. The next major hurdle on the upside might be near the $49,000 level. Any more gains could send the price towards the key the $50,000 level.

Dips Supported in BTC?

If bitcoin fails to clear the $47,800 resistance zone, it could correct further lower. An immediate support on the downside is near the $47,000 zone. The next major support is seen near the $46,800 level. The key support is now forming near the $46,400 level and the triangle trend line. It is near the 50% Fib retracement level of the upward move from the $44,468 swing low $48,200 high.

A downside break below the $46,300 support zone could send the price to $46,000 and the 100 hourly SMA. Any more losses might put a lot of pressure on the bulls in the near term.

Technical indicators:

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

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

Major Support Levels – $46,800, followed by $46,300.

Major Resistance Levels – $47,800, $48,000 and $48,200.