Bitcoin started an upward correction from the $18,150 area against the US Dollar. BTC is back above $19,200 and a break above $19,500 could trigger a new rally.
- Bitcoin is showing some positive signs above the $19,000 level.
- The price is trading above $19,000 and the 100 hourly simple moving average.
- A key contraction triangle is forming with support near $19,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could stage a fresh rally if there is a clear move above the $19,500 resistance zone.
Bitcoin price recovers
Bitcoin price remained well above the $18,150 level. BTC traded as low as $18,138 and started a decent recovery wave. The price was able to rally above the resistance levels of $18,800 and $19,000.
There was a move above the 50% Fib retracement level of the downward move from the swing low of $19,888 to $18,138 low. The bulls even pushed the price above the $19,200 resistance zone. It is now trading above $19,000 and the 100 hour simple moving average.
A key contraction triangle is also forming with support near $19,200 on the hourly chart of the BTC/USD pair. Bitcoin price is showing some positive signs above the $19,000 level.
On the upside, an immediate resistance is near the $19,475 level. It is near the 76.4% Fib retracement level of the downward move from the $19,888 high to $18,138 low. The next major resistance is seen near the $19,680 level.
Source: BTCUSD on TradingView.com
A close above the $19,680 level could trigger a further push to $20,000. Any further gains could send the price towards the $20,500 resistance zone.
New decline of BTC?
If bitcoin fails to recover above the $19,680 area, it could start a fresh decline. Immediate support on the downside is seen near the $19,200 area and the lower trendline 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 area could set the tone for further decline. In the indicated case, the price may even test the $18,500 level.
Hourly MACD – The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Main support levels – $19,200, followed by $19,000.
Main resistance levels – $19,500, $19,680 and $20,000.