Bitcoin started an upward correction from the $18,150 area against the US Dollar. BTC is back above $19,200 and a break above $19,500 could trigger a new rally.
- Bitcoin is showing some positive signs above the $19,000 level.
- The price is trading above $19,000 and the 100 hourly simple moving average.
- There is a major contracting triangle forming with support near $19,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could witness a new rally if there is a clear move above the $19,500 resistance area.
Bitcoin price recovering
Bitcoin price kept bidding well above the $18,150 level. Bitcoin traded as low as $18,138 and a good rally started. The price managed to recover above the $18,800 and $19,000 resistance levels.
There was a move above the 50% Fib retracement level of the downside move from the high-swinging $19,888 to the $18,138 low. The bulls pushed the price above the $19,200 resistance area. It is now trading above $19,000 and the 100 hourly simple moving average.
There is also a major contracting triangle forming with support near $19,200 on the hourly chart of the BTC/USD pair. Bitcoin price is showing some positive signs above the $19,000 level.
On the upside, there is an immediate resistance near the $19,475 level. It is near the 76.4% Fibonacci retracement level of the downside move from the $19,888 swing high to the $18,138 low. The next major resistance is near the $19,680 level.
Source: BTCUSD on TradingView.com
A close above the $19,680 level could lead to a new high to $20,000. Any further gains could send the price towards the $20,500 resistance area.
A new drop in bitcoin?
If Bitcoin fails to recover above $1,680, it may start a new decline. There is immediate support on the downside near the $19,200 area and the triangle’s lower trendline.
The next major support is near the $19,000 level and the hourly 100 SMA. A clear move below the $19,000 region could set the pace for a new decline. In the mentioned case, the price may test the $18,500 level.
Hourly MACD The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $19,200, followed by $19,000.
The main resistance levels are $19,500, $19,880, and $20,000.