TA: Bitcoin Remains In Downtrend, What Could Spark Sharp Upside
Bitcoin is trading in a bearish zone below $19,500 against the US
Dollar. BTC might start a sharp recovery wave if there is a move
above the $19,500 resistance. Bitcoin failed to gain pace above the
$19,500 and $19,600 resistance levels. The price is now trading
below the $20,000 level and the 100 hourly simple moving average.
There is a crucial bearish trend line forming with resistance near
$19,500 on the hourly chart of the BTC/USD pair (data feed from
Kraken). The pair could start a fresh decline unless there is a
move above the $19,500 resistance zone. Bitcoin Price Eyes Upside
Break Bitcoin price started another decline below the $19,500
support zone. The price even traded below the $19,000 support zone
and spiked below the $18,800 level. A low was formed near $18,738
and the price is now consolidating losses. There was a minor upward
move above the $19,000 resistance zone. The price climbed above the
23.6% Fib retracement level of the recent decline from the $20,500
swing high to $18,738 low. However, the price is now facing a
strong resistance near the $19,400 zone and the 100 hourly simple
moving average. There is also a crucial bearish trend line forming
with resistance near $19,500 on the hourly chart of the BTC/USD
pair. The trend line is close to the 50% Fib retracement level of
the recent decline from the $20,500 swing high to $18,738 low.
Source: BTCUSD on TradingView.com The next key resistance is near
the $19,800 zone. A clear move above the trend line resistance and
then $19,800 could push the price further higher. In the stated
case, the price could rise towards the $20,500 level. The next
major resistance sits near the $21,200 level. Fresh Decline in BTC?
If bitcoin fails to clear the $19,500 resistance zone, it could
start another decline. An immediate support on the downside is near
the $19,000 level. The next major support now sits near the $18,700
level, below which the price could decline heavily. In the stated
case, the price may perhaps decline towards the $17,500 level.
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 below the 50 level. Major Support Levels –
$19,000, followed by $18,700. Major Resistance Levels – $19,500,
$19,800 and $20,500.
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