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    Bitcoin Price Attempts Recovery, Why 100 SMA Is The Key


    Bitcoin started an upside correction from the $18,223 low against the US Dollar. BTC climbed above $19,000, but it is now facing resistance near the 100 hourly SMA.

    • Bitcoin traded as low as $18,223 before it started an upside correction.
    • The price is still trading below $20,000 and the 100 hourly simple moving average.
    • There is a key bearish trend line forming with resistance near $19,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair must clear the trend line and the 100 hourly SMA to continue higher towards $20,500.

    Bitcoin Price Recovers Above $19,000

    Bitcoin price extended losses after it settled below the $19,000 level. BTC broke the $18,500 support zone and traded as low as $18,223.

    There was no test of the $18,000 zone and the price started an upside correction. There was a steady increase above the $18,500 and $18,800 levels. The price was able to clear the 50% Fib retracement level of the downward move from the $20,198 swing high to $18,223 low.

    Bitcoin price even spiked above the $19,500 resistance zone. However, the bears were active near the $19,600 level and the 100 hourly simple moving average.

    There is also a key bearish trend line forming with resistance near $19,650 on the hourly chart of the BTC/USD pair. The trend line is near the 76.4% Fib retracement level of the downward move from the $20,198 swing high to $18,223 low.

    Bitcoin Price

    Source: BTCUSD on TradingView.com

    On the upside, an immediate resistance is near the $19,600 level and the trend line. The next major resistance sits near the $20,000 level. Any more gains might send the price towards the $20,500 resistance zone. Furthermore, if the bulls remain in action, the price could test $21,200.

    Fresh Decline in BTC?

    If bitcoin fails to continue higher above the $19,600 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $19,200 zone.

    The next major support is near the $18,850 level. A clear move below the $18,850 and $18,800 levels might open the doors for a move towards the $18,223 low or even to a new low.

    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 above the 50 level.

    Major Support Levels – $19,200, followed by $18,850.

    Major Resistance Levels – $19,600, $19,650 and $20,500.



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