Bitcoin Correcting Gains, Key Resistance Turned Support Nearby

Bitcoin price broke higher and traded near $ 19,500 against the US dollar. BTC is currently correcting gains, but previous resistance near $ 18,800 could offer support.

  • Bitcoin traded above the $ 18,700 and $ 18,800 resistance levels before correcting lower.
  • The price was trading near the $ 19,500 level and above the 100-hour simple moving average.
  • A major bullish trendline is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 18,800.
  • The pair could start a fresh spike as long as it is above $ 18,800 and the 100-hour SMA.

Bitcoin price is approaching key support

Eventually, Bitcoin price was able to break through the resistance levels of $ 18,700 and $ 18,800. BTC climbed above the USD 19,000 and USD 19,200 levels. A new year high was formed near $ 19,450 before the price began a downward correction.

There was a pause below the $ 19,300 and $ 19,200 levels. The price trading below the 23.6% Fib retracement level of the uptrend from the low of $ 18,083 to the high of $ 19,450. It is now approaching a major support zone at $ 18,800 (the most recent hurdle).

A major bullish trendline is also forming on the hourly chart of the BTC / USD pair with support near USD 18,800. The trendline is close to the 50% Fib retracement level of the move up from $ 18,083 swing low to $ 19,450 swing high.

Source: BTCUSD on TradingView.com

The closest support is near the $ 18,650 level or the 100-hour simple moving average. Further losses could result in a significant downward correction below the $ 18,500 support. In the said case, Bitcoin price could even revisit the support zone of USD 18,000 in the near future.

New rise in BTC?

If Bitcoin stays above the USD 18,800 support level and the 100-hour SMA, it could see another spike. Initial resistance is near the $ 19,200 level.

The first major resistance is near the $ 19,400 level. A successful close above the $ 19,400 level could open the doors to further gains above the recent high. The main target for the bulls could be a new all-time high above the $ 19,800 and $ 20,000 levels.

Technical indicators:

Hourly MACD – The MACD is slowly losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently close to the 50 level.

Major support levels – $ 18,800 followed by $ 18,650.

Main Resistance Levels – $ 19,200, $ 19,400, and $ 19,500.

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