Bitcoin Price Still Consolidates, What Could Trigger A Nasty Drop

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price is struggling to climb higher above $19,200 against the US Dollar. BTC could start a major decline if it breaks the $18,900 and $18,500 support levels.

Bitcoin failed to gain pace and remained in a bearish zone below $19,500.
The price is trading below $19,400 and the 100 hourly simple moving average.
There is a short-term breakout pattern forming with resistance near $19,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a steady recovery if there is a clear move above $19,200 and then $19,500.

Bitcoin Price Continues To Struggle

Bitcoin price attempted a move towards the $19,500 resistance zone. BTC remained in a bearish zone and even failed to clear the $19,400 level. A high was formed near $19,344 and there was a fresh decline.

The price declined below the $19,200 level and tested $18,950. A low is formed near $18,938 and the price is now consolidating losses. It traded above the 23.6% Fib retracement level of the recent drop from the $19,344 swing high to $18,938 low.

Bitcoin price is now trading below $19,400 and the 100 hourly simple moving average. There is also a short-term breakout pattern forming with resistance near $19,200 on the hourly chart of the BTC/USD pair.

On the upside, an immediate resistance is near the $19,150 level. It is close to the 50% Fib retracement level of the recent drop from the $19,344 swing high to $18,938 low. The first major resistance sits near the $19,200 level and the trend line.

Source: BTCUSD on TradingView.com

The next major resistance might be $19,300 or the 100 hourly SMA. A clear move above the $19,300 resistance might send the price towards the $19,500 resistance. Any more gains might open the doors for a move towards the $20,000 resistance zone.

Downside Break in BTC?

If bitcoin fails to rise above the $19,200 resistance zone, it could continue to move down. An immediate support on the downside is near the $19,000 zone.

The next major support is near the $18,900 zone. A downside break and close below might call for a test of the main breakdown support at $18,500. Any more losses might start a major decline and the price could drop to $17,500.

Technical indicators:

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

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

Major Support Levels – $19,000, followed by $18,900.

Major Resistance Levels – $19,200, $19,300 and $19,500.

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.

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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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