TA: Why Bitcoin is Vulnerable If It Continues To Struggle Near $19.5K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price remained in a bullish zone and it made another attempt to gain pace above $19,500 against the US Dollar. BTC is clearing struggling to stay above $19,500, which is a major breakout zone.

Bitcoin is slowly moving higher towards the $19,500 and $19,550 resistance levels.
The price is currently well above the $19,200 level and the 100 hourly simple moving average.
There is a key rising channel forming with support near $19,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct lower if it continues to struggle near $19,500 and $19,550.

Bitcoin Price is Facing a Major Hurdle

After forming a support base near $19,200, bitcoin price started a fresh increase. BTC broke the $19,400 resistance and it settled nicely above the 100 hourly simple moving average.

The price even spiked above $19,500 once again, but it failed to hold gains. A high is formed near $19,555 and the price is currently correcting lower. There was a drop below the $19,400 level, and the price traded close to the 50% Fib retracement level of the recent wave from the $19,083 swing low to $19,555 high.

On the downside, there is a decent support forming near the $19,200 level. There is also a key rising channel forming with support near $19,200 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The channel support is close to the 76.4% Fib retracement level of the recent wave from the $19,083 swing low to $19,555 high. On the upside, the price is clearly facing a strong resistance near $19,500 and $19,550. Bitcoin price must settle above the $19,500 level and gain pace above $19,550 to rise towards the $19,800 and $20,000 resistance levels.

Downsides Supported in BTC?

If bitcoin starts another downside correction, it could find support near the $19,260 level. The first key support is near the channel lower trend line or $19,200.

A downside break below the channel support might lead the price towards the $19,000 support or the 100 hourly simple moving average. Any more losses may possibly spark a larger decline towards $18,500 in the near term.

Technical indicators:

Hourly MACD – The MACD is struggling to gain momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently dipping towards the 50 level.

Major Support Levels – $19,260, followed by $19,200.

Major Resistance Levels – $19,500, $19,550 and $20,000.

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.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

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Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

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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