Bitcoin holds the key $18,500 support zone against the US dollar. BTC needs to stay above the $20,000 resistance zone to move into the positive zone.
- Bitcoin is struggling to gain momentum above the $19,500 resistance zone.
- The price is below $19,000 and below the 100 hourly simple moving average.
- There is a key bearish trend line with resistance near $19,020 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may make a new rally if there is a clear move above the $19,500 resistance zone.
The value of Bitcoin will strengthen.
The price of Bitcoin made another attempt to clear the $19,500 protection zone. However, BTC struggled and established a short-term high near the $19,400 level.
A high formed around $19,392 and the price declined. There was a move below the $19,000 level and below the 100 hourly simple moving average. The pair traded as low as $18,645 and is currently consolidating losses. There is little upside above the $18,800 level.
Bitcoin price rose above the 23.6% Fib retracement level from the swing high of $19,392 to the low of $18,645. On the downside, immediate resistance is near the $19,000 level and the 100 hourly simple moving average.
There is a key bearish trend line with resistance near $19,020 on the hourly chart of the BTC/USD pair. The trend line is near the 50% Fib retracement level of the recent decline from the $19,392 swing high to the $18,645 low.
Source: BTCUSD on TradingView.com
The next highest resistance is placed near the $19,500 zone. A move above the $19,500 level could initiate a fresh rally towards $20,000. Any further gains could initiate a sustained rally and the price could rise towards the $21,500 resistance zone.
A new discount in BTC?
If Bitcoin fails to recover above the $19,500 zone, a new downtrend may begin. Immediate support is near the $18,650 zone.
The next major support is at the $18,500 level. A clear move below the $18,500 zone could pave the way for a fresh decline. In the mentioned case, the price may even test the level of 17,500 dollars.
Hourly MACD – MACD is now losing momentum in a bullish zone.
Hourly RSI (Relative Strength Index) – The BTC/USD RSI is now below the 50 level.
Main support levels – $18,650, then $18,500.
Major resistance levels – $19,000, $19,350 and $19,500.