TA: Bitcoin Correcting Gains, Key Resistance Turned Support Nearby
Bitcoin price broke to the upside and traded close to $19,500 against the US Dollar. BTC is currently correcting gains, but the previous resistance near $18,800 could provide support.
- Bitcoin traded above the $18,700 and $18,800 resistance levels before correcting lower.
- The price traded close to the $19,500 level and settled above the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $18,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh increase as long as it is above $18,800 and the 100 hourly SMA.
Bitcoin Price is Approaching Key Support
Finally, bitcoin price was able to clear the $18,700 and $18,800 resistance levels. BTC climbed above the $19,000 and $19,200 levels. A new yearly high was formed near $19,450 before the price started a downside correction.
There was a break below the $19,300 and $19,200 levels. The price traded below the 23.6% Fib retracement level of the upward move from the $18,083 swing low to $19,450 swing high. It is now approaching a major support zone at $18,800 (the recent hurdle).
There is also a major bullish trend line forming with support near $18,800 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the upward move from the $18,083 swing low to $19,450 swing high.
Source: BTCUSD on TradingView.com
The next support is near the $18,650 level or the 100 hourly simple moving average. Any further losses could start a major downside correction below the $18,500 support. In the stated case, bitcoin price might even revisit the $18,000 support zone in the near term.
Fresh Increase in BTC?
If bitcoin stays above the $18,800 support level and the 100 hourly SMA, there could be a fresh increase. An initial resistance is near the $19,200 level.
The first major resistance is near the $19,400 level. A successful close above the $19,400 level could open the doors for more gains above the recent higher. The main target for the bulls could be a new all-time high above the $19,800 and $20,000 levels.
Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently close to the 50 level.
Major Support Levels – $18,800, followed by $18,650.
Major Resistance Levels – $19,200, $19,400 and $19,500.