Why Bitcoin Turns Attractive On Dips Above $50K

• Teresa Bach
• October 6, 2021
• Bitcoin
• 0 Comments

Bitcoin price gained pace and cleared the $50,000 resistance against the US Dollar. BTC could correct lower, but dips might remain limited below $50,000.

Bitcoin climbed higher above the $49,500 and $50,000 resistance levels.
The price is now trading above $50,000 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $49,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct lower, but it might find support near $50,000 or $49,500.

Bitcoin Price Gains Momentum
Bitcoin price remained in an uptrend and extended its increase above the $49,500 resistance zone. BTC even broke the $50,000 resistance level and settled above the 100 hourly simple moving average.
The bulls remained in action and they were able to push the price above the $51,000 level. It traded close to $52,000 and a high is formed near $51,888. The price is now consolidating gains above the $51,000 level.
An immediate support on the downside is near the $50,800 level. It is close to the 23.6% Fib retracement level of the recent increase from the $46,895 swing low to $51,888 high. There is also a key bullish trend line forming with support near $49,500 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com
On the upside, an initial resistance is near the $51,500 level. The first major resistance is near the $52,000 level, above which the price could start a fresh increase. The next major resistance for the bulls may possibly be near the $53,200 level. Any more gains could set the pace for a move towards the $55,000 level.
Dips Supported In BTC?
If bitcoin fails to clear the $52,000 resistance zone, it could start a fresh downside correction. An immediate support on the downside is near the $50,800 level.
The first major support is now forming near the $50,000 level and the trend line. It is near the 50% Fib retracement level of the recent increase from the $46,895 swing low to $51,888 high. If there is a break below the trend line support, the price might decline towards the $49,000 level and the 100 hourly SMA.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.
Major Support Levels – $50,800, followed by $50,000.
Major Resistance Levels – $51,500, $52,000 and $53,200.