Why Bitcoin Price Could Correct Sharply If It Breaks 100 SMA

Bitcoin price attempted an uptrend above the $ 19,500 resistance against the US dollar but failed. BTC could fall sharply if there is a significant break below the 100-hour SMA.

  • Bitcoin is currently struggling to hit the key resistance level of $ 19,500.
  • The price should remain below $ 19,150 and 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 19,200.
  • The pair is likely to accelerate lower if there is a significant break below $ 19,150 and the 100-hour SMA.

Bitcoin price shows bearish signs

Bitcoin price rose again to over $ 19,250 and $ 19,400. BTC made another attempt to remove the $ 19,500 resistance but failed to see an uptrend.

A high has been made near $ 19,586 and the price is currently trading above the 100-hour simple moving average. There was a pause below the $ 19,400 level. The price even traded below the 23.6% fib retracement level of the recent surge from the low of $ 18,851 to the high of $ 19,586.

Bitcoin is now trading near the $ 19,300 level. Initial support is near the $ 19,220 level. A major bullish trendline is also forming on the hourly chart of the BTC / USD pair with support near USD 19,200.

Source: BTCUSD on TradingView.com

The trendline is close to the 50% fib retracement level of the recent spike from $ 18,851 to $ 19,586. The next key support is near the 100-hour simple moving average at $ 19,120. If there is a downside break below trendline support, the 100-hour SMA and $ 19,000, the price could trigger a significant downward correction. The next major support could be $ 18,500.

Up break at BTC?

If Bitcoin manages to stay above trendline support and the 100-hour simple moving average, it could rise above $ 19,400. The main resistance is near the $ 19,500 level.

The price needs to get bullish above the $ 19,500 level and recent surge. A decent close above the $ 19,500 level could move the price toward the main $ 20,000 barrier.

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 just below the 50 level.

Major support levels – $ 19,200 followed by $ 19,150.

Main Resistance Levels – $ 19,400, $ 19,500, and $ 19,800.

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