Bitcoin’s price has once again hit the $50,000 mark, but experts believe that a short-term correction may be on the horizon. The cryptocurrency surged above the $48,800 resistance level and reached a high of $50,339 before entering a consolidation phase.
Despite a slight dip below $50,000, Bitcoin is still trading above the 23.6% Fibonacci retracement level of its recent rally. Additionally, it remains above the 100 hourly Simple Moving Average, indicating a positive market sentiment.
A rising channel has formed on the hourly chart, with support at $49,750. If the price fails to break the immediate resistance at $50,250, a downside correction could occur. The first major support level sits at $49,000, followed by the 50% Fibonacci retracement level at $47,642. A close below $49,000 could trigger further bearish momentum, potentially leading to a drop to the $47,650 support level.
Technical indicators suggest that the market may be losing some bullish momentum, as seen in the MACD indicator. However, the RSI is currently above the 50 level, indicating that there is still some strength in the market.
Investors should exercise caution and conduct thorough research before making any investment decisions. The cryptocurrency market is known for its volatility, and investing carries inherent risks.