Bitcoin Trades Below 100 SMA, Why BTC Could Face Short-term Dips

Bitcoin price failed to rise further above $ 18,800 and was corrected lower against the US dollar. BTC is now trading below the 100-hour SMA and is showing some bearish signs.

  • Bitcoin is facing strong resistance near the $ 18,700 and $ 18,800 levels.
  • The price is now trading below $ 18,500 and the 100-hour simple moving average.
  • On the hourly chart of the BTC / USD pair (data feed from Kraken) an upward channel is forming in the short term with support near USD 18,150.
  • The pair could correct well below $ 18,150 and $ 18,000 in the short term.

Bitcoin price is struggling below $ 18.8,000

There have been a few swing movements in Bitcoin price (as opposed to Ethereum and Ripple) below the $ 18,200 and $ 18,000 levels. BTC traded near the $ 17,500 support area before rising again.

However, the price has struggled to gain momentum and appears to face strong resistance near the $ 18,700 and $ 18,800 levels. The last swing high was $ 18,700 before the price fell below $ 18,200. It traded at just $ 17,991, below the 100-hour simple moving average.

Bitcoin is currently correcting higher and trading above $ 18,100. There was a break above the 23.6% fib retracement level of the recent drop from the high of $ 18,703 to the low of $ 17,991.

Source: BTCUSD on TradingView.com

Immediate resistance is near the $ 18,350 level and the 100 hour simple moving average. It is close to the 50% Fib retracement level of the recent decline from the high of $ 18,703 to the low of $ 17,991. In addition, a short-term ascending channel is forming on the hourly chart of the BTC / USD pair with support near USD 18,150.

If a downside break occurs below the channel support, there is a risk of further losses below the USD 18,000 support level. The next big downside support is near the $ 17,500 and $ 17,350 levels.

New rise in BTC?

If Bitcoin stays above channel support, or $ 18,000, it could attempt another spike above the 100-hour SMA. The first major resistance is near the $ 18,500 level.

The main hurdle for the bulls is near the $ 18,800 level. A successful break above the $ 18,800 zone is a must to start a new rally. The next major resistance above $ 18,800 could be $ 19,500.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently correcting higher towards 50.

Major Support Levels – $ 18,150, followed by $ 18,000.

Main Resistance Levels – $ 18,350, $ 18,500, and $ 18,800.

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