Bitcoin has started a correction above the $18,150 zone against the US dollar. BTC is back above $19,200 and a break above $19,500 could form a new rally.
- Bitcoin is showing few positive signs above the $19,000 level.
- The price is trading above $19,000 and at the 100 hourly simple moving average.
- On the hourly chart of the BTC/USD pair, there is a key contracting triangle (data from Kraken) with support around $19,200.
- The pair may make a new rally if there is a clear move above the $19,500 resistance zone.
The price of Bitcoin is back
Bitcoin price remains well-bid above the $18,150 level. BTC dropped to $18,138 and started a nice recovery wave. The price was able to recover above the $18,800 and $19,000 resistance levels.
There was a move above the 50% Fib retracement level from the $19,888 swing high to $18,138 low. The bulls pushed the price above the $19,200 resistance zone. It is now trading above $19,000 and at the 100 hourly simple moving average.
There is a key contract triangle with support around $19,200 on the hourly chart of the BTC/USD pair. Bitcoin price is showing few positive signs above the $19,000 level.
On the downside, immediate resistance is near the $19,475 level. It is close to the 76.4% Fib retracement level from the $19,888 swing high to $18,138 low. The next major resistance sits near the $19,680 level.
Source: BTCUSD on TradingView.com
A move above the $19,680 level could initiate a fresh rally towards $20,000. Any further gains could send the price towards the $20,500 resistance zone.
A new discount in BTC?
If Bitcoin fails to recover above the $19,680 zone, a new downtrend may begin. On the downside, immediate support is near the $19,200 zone and the lower trend line of the triangle.
The next major support is near the $19,000 level and the 100 hourly SMA. A clear move below the $19,000 zone could pave the way for a fresh downtrend. In the mentioned case, the price may even test the level of 18,500 dollars.
Technical indicators:
Hourly MACD – MACD is now losing momentum in a bullish zone.
Hourly RSI (Relative Strength Index) – The BTC/USD RSI is now above the 50 level.
Main support levels – $19,200, then $19,000.
Major resistance levels – $19,500, $19,680 and $20,000.