Bitcoin started an upward correction above $19,000 against the US Dollar. BTC is now facing strong resistance near the $19,350 and $19,500 levels.
- Bitcoin is attempting an upward correction above the $19,000 level.
- The price is still trading below $19,500 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $19,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must clear the trend line and the hourly 100 SMA to continue higher towards $20,500.
Bitcoin price faces hurdles
Bitcoin price started a short term bullish correction From 18,223 dollars. BTC managed to climb above the $18,800 and $19,000 levels. It even cleared the $19,350 resistance area.
However, the price encountered a strong resistance near the $19,650 level and Simple moving average per 100 hours. A high formed near $19678 and the price started a new low. There was a move below $19,500 and $19,400.
Bitcoin price traded below the 50% Fibonacci retracement level of the upward move from the $18223 swing low to $19678 high. The bulls are now protecting the $18,800 support area.
The 61.8% Fibonacci retracement level of the upward move from the $18,223 swing low to $19678 high is seen as support. On the upside, there is an immediate resistance near the $19,200 level. The next major resistance is near the $19,350 level.
Source: BTCUSD on TradingView.com
There is also a major bearish trend line forming with resistance near $19,420 on the hourly chart of the BTC/USD pair. A clear move above the trend line, 100 hourly simple moving average and $19,500 could open the doors for a move towards the $20,000 level. Any further gains could send the price towards the $20,500 resistance area.
A new drop in bitcoin?
If Bitcoin fails to continue rising above the $19,350 resistance area, it may start a new decline. There is immediate support to the downside near the $18,800 region.
The next major support is near the $18,550 level. A clear move below the $18.550 region could set the pace for an even larger decline. In the aforementioned case, the price may drop below 18,223 USD.
Hourly MACD – The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now approaching the 50 level.
The main support levels are $18,800, followed by $18.550.
The main resistance levels are $19,200, $19,350 and $19,500.