Bitcoin broke the key $19,500 support against the US Dollar. BTC is showing bearish signs and remains at a risk of a move towards the $18,000 level.
Bitcoin failed to start a fresh increase and declined below the $19,500 support.
The price is now trading below the $19,000 level and the 100 hourly simple moving average.
There is a connecting bearish trend line forming with resistance near $19,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct higher, but upsides might be limited above $19,500.
Bitcoin Price Takes A Hit
Bitcoin price failed to gain pace for a move above the $20,500 and $20,550 resistance levels. There were many failed attempts, sparking a downside reaction below the key $19,500 support zone.
There was a sharp decline below the $19,500 support and the 100 hourly simple moving average. The price declined below the $19,200 and $19,000 levels. A low is formed near $18,670 and the price is now consolidating losses.
It is now trading below the $19,000 level and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $19,000 level. It is near the 23.6% Fib retracement level of the recent decline from the $20,171 swing high to $18,670 low.
The next major resistance sits near the $19,400 level. There is also a connecting bearish trend line forming with resistance near $19,420 on the hourly chart of the BTC/USD pair.
The trend line is near the 50% Fib retracement level of the recent decline from the $20,171 swing high to $18,670 low. Any more gains might send the price towards the $19,800 resistance zone and the 100 hourly simple moving average.
More Losses in BTC?
If bitcoin fails to start a recovery wave above the $19,000 zone, it could continue to move down. An immediate support on the downside is near the $18,650 zone.
The next major support sits near the $18,500 level. A downside break below the $18,500 support might spark more downsides. In the stated case, the price may perhaps test the $18,000 support.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $18,650, followed by $18,500.
Major Resistance Levels – $19,000, $19,400 and $19,500.
