After failing to cross the $49,800 resistance level yesterday, Bitcoin fell 2.8% today. The cryptocurrency gained 22.5% over the past week of trading as it surged to the resistance level of $48,570 (1,414 Fib Extended Green).
Yesterday, Bitcoin broke the key resistance level of $48,570 but struggled to break into the next major supply area of $49,500 to $50,000. Then it failed to close above the daily candle at $48,570 and continued to fall to retest below $46,000 again. However, the bulls were quick to buy on dips and just a few hours later, at the time of writing, Bitcoin was back trading at above $47,500.
Since February 8, 2021, Bitcoin has relied on the center line of the price hike channel as a solid support, as shown in the following 4-hour graph. Now it has also formed a short-term ascending triangle pattern, with the apex of the triangle at $48,570.
BTC/USD Daily Chart. Source: TradingView
The daily closing price must be higher than $48,570 for Bitcoin to break the psychological barrier of $50,000.
Important levels of support and resistance for Bitcoin
Key support levels: $47,500, $46,000, $44,855, $44,000, $42,000.
Major Resistance Levels: $48,570, $49,500, $50,000, $50,400, $41,380.
Looking ahead, the initial resistance is at $48,570 (1,414 Fibonacci extension-green). This is followed by $49,500 (short-term expansion by 1,618 Fib) and $50,000. In addition to $50,000, other resistances are at $50,400 (1,414 Fib extension yellow) and $51,380 (1,618 Fib extension green).
On the flip side, the first support is near the midline of the ascending channel – $47,500. Below that, the support levels are at $46,000 (according to Bitstamps calculations, the lowest price today is $45,914), $44,855 (0.236 Fib), $44,000 (lower limit of the price channel) and $42,000.
Although the RSI was bullish, it showed signs of bearish divergence for the two periods as the price made higher highs while the RSI did not. This may indicate that as the divergence increases, Bitcoin may experience a brief correction.
BTC/USD 4-Hours Chart. Source: TradingView