Bitcoin price remains high above the $ 49,000 support and many predict it could start a new rally if it breaks through the $ 50,800 resistance area. At the time of writing, BTC is changing hands at $ 49,206 after dropping 13% over the past seven days.
BTC / USD 4-hour chart | Source: TradingView
Bitcoin price and current market value fell to their lowest level since February 2018.
Bitcoin price has corrected below the $ 50,000 support from the $ 52,000 resistance area. BTC broke through the $ 49,500 support, but the bulls were active above $ 49,000. One most recent high was reached at $ 51.955 before a downward correction was made. Price traded below the 50% Fibonacci retracement of the recent spike from a low of $ 47.210 to a high of $ 51.955. Bitcoin price also rallied below the $ 49,500 support and the 100-hour simple moving average.
BTC dominance chart for 1 day | Source: TradingView
However, it has stabilized around the $ 49,000 mark. The 61.8% Fibonacci retracement level of the recent rally from a low of $ 47.210 to a high of $ 51.955 is also supported. The price is currently trading above $ 49,500 and the 100-hour simple moving average. Immediate resistance to the upward movement is around the $ 50,400 mark. The next major resistance is around the $ 50,500 mark. The hourly chart of the BTC / USD pair is also forming a major downtrend line with resistance around $ 50,500.
A significant break above the $ 50,500 resistance area could open the door for further uptrend. The next key resistance is around the $ 52,000 mark, above which the price could jump significantly. If the top cryptocurrency does not overcome the $ 50,500 resistance area, it may continue to decline.