TA: Bitcoin Corrects 5%, Why Upsides Could Remain Capped Near $18.6K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price declined more than 5% and broke many supports near $18,500 against the US Dollar. BTC could correct higher, but upsides might face hurdles near $18,600.

Bitcoin started a fresh decline after it failed to stay above the $19,000 support.
The price traded close to the $18,000 support and settled below the 100 hourly simple moving average.
There is a short-term contracting triangle forming with resistance near $18,320 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct higher, but the previous support at $18,500 and $18,600 might stop upsides.

Bitcoin Price is Correcting Gains

After many failed attempts to surpass $19,500 and $19,600, bitcoin price reacted to the downside. BTC broke the $19,000 support and settled below the 100 hourly simple moving average to move into a short-term bearish zone.

The price gained pace after it broke the key $18,600 and $18,500 support levels. The bears gained strength and they managed to push the price towards the $18,000 zone. A low is formed near $18,033 and the price is currently consolidating losses.

An initial resistance is near the $18,300 zone or the 23.6% Fib retracement level of the recent decline from the $18,986 high to $18,033 low. There is also a short-term contracting triangle forming with resistance near $18,320 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

If there is an upside break above the triangle resistance, bitcoin price might recover above $18,350. The next major resistance is near the $18,500 level. It is close to the 50% Fib retracement level of the recent decline from the $18,986 high to $18,033 low.

The main resistance is near the $18,600 level (the recent breakdown zone). A close above the $18,600 level is must for a recovery wave towards the $19,000 level.

More Losses in BTC?

If bitcoin fails to clear the $18,500 resistance zone, it could continue to move down. An initial support is near the triangle lower trend line at $18,100.

The first major support is near $18,000, below which the price might decline sharply. The next major support is near the $17,650 level. Any more losses might lead the price towards the $17,200 level.

Technical indicators:

Hourly MACD – The MACD is showing many negative signs in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering from the 22 level.

Major Support Levels – $18,100, followed by $18,000.

Major Resistance Levels – $18,320, $18,500 and $18,600.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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