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TA: Bitcoin Price Recovery Stalls, Why This Barrier Could Trigger Another Drop

NewsBTC

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Bitcoin started an upside correction above $19,000 against the US Dollar. BTC is now struggling to clear the $19,400 and $19,500 resistance levels.

  • Bitcoin traded as low as $18,550 and started an upside correction.
  • The price is now trading below the $19,500 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $19,310 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair might start another drop unless there is a clear move above the $19,500 resistance.
Bitcoin Price Faces Resistance

Bitcoin price started a major decline below the key $19,500 support zone. BTC gained pace for a move below the $19,000 level and the 100 hourly simple moving average.

The price even traded below the $19,000 level and tested $18,500. A low was formed near $18,550 and the price recently started an upside correction. There was a move above the $19,000 resistance zone. The bulls pushed the price above the 23.6% Fib retracement level of the key drop from the $20,172 swing high to $18,550 low.

However, the bears remained active near the $19,500 resistance zone. There is also a major bearish trend line forming with resistance near $19,310 on the hourly chart of the BTC/USD pair.

Bitcoin faced rejection near the 50% Fib retracement level of the key drop from the $20,172 swing high to $18,550 low. It is now trading below the $19,500 level and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $19,300 level.

Source: BTCUSD on TradingView.com

The next major resistance sits near the $19,500 level. A clear move above the $19,500 resistance might start a steady increase to $20,000. Any more gains might send the price towards the $20,500 resistance zone.

Fresh Decline in BTC?

If bitcoin fails to start a recovery wave above the $19,500 zone, it could continue to move down. An immediate support on the downside is near the $19,000 zone.

The next major support sits near the $18,550 level. A downside break below the $18,550 support might spark more downsides. In the stated case, the price could drop towards the $18,000 support.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $19,000, followed by $18,550.

Major Resistance Levels – $19,300, $19,500 and $20,000.


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