TA: Bitcoin Trades Below 100 SMA, Why BTC Could Face Short-term Dips
Bitcoin price failed to continue higher above $18,800 and corrected lower against the US Dollar. BTC is now trading below the 100 hourly SMA and showing a few bearish signs.
- Bitcoin is facing a strong resistance near the $18,700 and $18,800 levels.
- The price is now trading below $18,500 and the 100 hourly simple moving average.
- There is a short-term ascending channel forming with support near $18,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct sharply below $18,150 and $18,000 levels in the near term.
Bitcoin Price is Struggling Below $18.8K
However, the price struggled to gain momentum and it seems to be facing a strong resistance near the $18,700 and $18,800 levels. The last swing high was near $18,700 before the price dived below $18,200. It traded as low as $17,991 and settled below the 100 hourly simple moving average.
Bitcoin is currently correcting higher and trading above $18,100. There was a break above the 23.6% Fib retracement level of the recent decline from the $18,703 high to $17,991 low.
Source: BTCUSD on TradingView.com
An immediate resistance is near the $18,350 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent decline from the $18,703 high to $17,991 low. Moreover, there is a short-term ascending channel forming with support near $18,150 on the hourly chart of the BTC/USD pair.
If there is a downside break below the channel support, there is a risk of more losses below the $18,000 support level. The next major support on the downside is near the $17,500 and $17,350 levels.
Fresh Increase in BTC?
If bitcoin stays above the channel support or $18,000, it could attempt another increase above the 100 hourly SMA. The first major resistance is near the $18,500 level.
The main hurdle for the bulls is forming near the $18,800 level. A successful break above the $18,800 zone is must to start a fresh rally. The next major resistance above $18,800 could be $19,500.
Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting higher towards the 50 level.
Major Support Levels – $18,150, followed by $18,000.
Major Resistance Levels – $18,350, $18,500 and $18,800.