TA: Bitcoin Recovers From $45K, Why It Could Struggle Near $52K

Bitcoin price extended its decline and tested the $45,000 support against the US Dollar. BTC is now recovering losses, but the $52,000 zone is likely to act as a strong resistance.

  • Bitcoin declined heavily below $50,000 and it even tested the $45,000 support zone.
  • The price is recovering towards $50,000 and it is well below the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $51,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The previous support near $51,800 and $52,000 could act as a strong barrier.

Bitcoin Price is Approaching Hurdles

There were heavy losses in bitcoin below the $52,000 and $50,000 support levels. BTC even tested the $45,000 support zone and it settled well below the 100 hourly simple moving average.

A low is formed near $44,960 and the price is currently recovering losses. It corrected above the $46,500 and $48,000 resistance levels. There was a break above the 23.6% Fib retracement level of the downward move from the $58,400 swing high to $44,960 low.

Source: BTCUSD on TradingView.com

It is now testing the $50,000 resistance, but it is still well below the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $51,200 on the hourly chart of the BTC/USD pair. The first major resistance is now forming near the $51,800 level.

The 50% Fib retracement level of the downward move from the $58,400 swing high to $44,960 low is also near $51,800. A close above the $51,800 and $52,000 resistance levels is must for a fresh increase towards $55,000 in the near term.

Another Dip in BTC?

If bitcoin fails to continue higher above the trend line resistance and $51,800, there are chances of another dip. An initial support on the downside is near the $48,000 level.

The main support is now forming near the $45,000 zone. If there is a clear break below the $45,000 support, the price could dive 8%-10% in the near term. The next major support sits near the $40,000 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.

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

Major Support Levels – $48,000, followed by $45,000.

Major Resistance Levels – $51,800, $52,000 and $55,000.

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