Bitcoin Stuck In Range, Why BTC Remains At Risk of A Sharp Correction

Bitcoin price again failed to offset the $ 18,800 resistance against the US dollar. BTC is trading in a range and could correct down sharply on a break below $ 18,200.

  • Bitcoin is still trading well below the major resistance area near the $ 18,700 and $ 18,800 levels.
  • The price is now below $ 18,500 and the 100 hour simple moving average.
  • A major contraction triangle is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 18,480.
  • The pair could fall sharply if there is a significant break below $ 18,200 and $ 18,050.

Bitcoin price is showing some bearish signs

There was another attempt by Bitcoin price to break down the $ 18,700 and $ 18,800 resistance levels. The BTC bulls failed to gain strength, however, causing another drop below the $ 18,600 level.

The price even surpassed the $ 18,500 level and was below the 100 hour simple moving average. Conversely, there were strong upward moves in Ethereum and Ripple which broke the resistance at USD 600 and USD 0.60, respectively.

Bitcoin price has traded as low as $ 18,160 and is currently consolidating in a row. There was a break above the $ 18,250 level. It even traded above the 23.6% fib retracement level of the recent decline from the high of $ 18,782 to the low of $ 18,160.

Source: BTCUSD on TradingView.com

The price is now facing strong resistance near the $ 18,450 level and the 100-hour simple moving average. A major contraction triangle is also forming on the hourly chart of the BTC / USD pair with resistance near USD 18,480.

The triangle resistance is close to the 50% fib retracement level of the recent decline from the high of $ 18,782 to the low of $ 18,160. If there is an upside break above $ 18,500, the price could make another attempt to clear the $ 18,700 and $ 18,800 resistance levels.

Downward pause at BTC?

If Bitcoin fails to offset the $ 18,500 resistance, it risks breaking down. Initial support is near the lower trendline of the triangle at $ 18,280.

A significant break below the triangle support could take the price towards the swing lows of $ 18,160. In the case mentioned, there is even a risk that further losses below the support level of USD 18,000 will occur in the coming sessions.

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 just below the 50 level.

Major support levels – $ 18,280, followed by $ 18,160.

Main Resistance Levels – $ 18,500, $ 18,700, and $ 18,800.