Bitcoin price hit a new multi-month high near $ 18,850 against the US dollar. BTC is now consolidating profits (while the ripple increased 35%) and is preparing for the next big step.
- Bitcoin traded above the $ 18,000 resistance and nearly tested the $ 19,000 level.
- The price is now consolidating above $ 18,000 and the simple moving average of 100 (4 hours).
- A major contraction triangle is forming on the 4-hour chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 18,800.
- The pair could either continue to climb above $ 18,800 or correct towards $ 17,350.
Bitcoin price consolidates profits
For the past week, Bitcoin has extended its surge above the $ 17,500 and $ 18,000 resistance levels against the US dollar. The BTC / USD pair has even hit the $ 18,500 level and is well above the simple moving average of 100 (4 hours).
It traded close to the $ 19,000 level and made a new multi-month high of $ 18,853. The price is currently consolidating gains below the $ 18,800 level while some altcoins like Ripple and Ethereum rose bullishly.
Initial support for Bitcoin is near the $ 18,450 level. It is close to the 23.6% Fib retracement level of the upward wave from the $ 17,344 low to $ 18,853.
Source: BTCUSD on TradingView.com
A major contraction triangle appears to be forming on the 4-hour chart of the BTC / USD pair with resistance near USD 18,800. If there is an upside break above the triangular resistance, the price could start a new rally in the coming sessions.
The next immediate resistance is near the $ 19,000 level. A decent close above the $ 19,000 level could open the doors for a larger move towards the $ 19,400 and $ 19,550 levels.
Downward correction in BTC?
If Bitcoin fails to offset the $ 18,800 resistance, it could correct lower. The first major support is near the lower trendline of the triangle and at $ 18,400.
The next big support is near the $ 18,000 level or the 50% fib retracement level of the upside wave from the $ 17,344 low to the $ 18,853 high. Further losses could potentially push the price back towards the USD 17,350 support zone in the coming days.
4 hours MACD – The MACD for BTC / USD is slowly losing momentum in the bullish zone.
4 hour RSI (Relative Strength Index) – The RSI for BTC / USD corrected from 70 to lower.
Main support tier – $ 18,450
Main Resistance Level – $ 18,800