Home CryptocurrencyAnalysis Bitcoin price remains limited, why there is hope for a new rally

Bitcoin price remains limited, why there is hope for a new rally

by SuperiorInvest

Bitcoin started an upward correction from the $18,150 zone against the US dollar. BTC is back above $19,200 and a break above $19,500 could trigger a new rally.

  • Bitcoin is showing some positive signs above the $19,000 level.
  • The price is trading above $19,000 and the 100 hourly simple moving average.
  • A key contracting triangle is forming with support near $19,200 on the hourly chart of the BTC/USD pair (data source from Kraken).
  • The pair could stage a new rally if there is a clear move above the $19,500 resistance zone.

Bitcoin price is recovering

Bitcoin price remained well above the $18,150 level. BTC traded as high as $18,138 and got off to a decent start recovery wave. The price was able to recover above the $18,800 and $19,000 resistance levels.

There was a move above the 50% Fib retracement level of the downward move from the $19,888 swing high to the $18,138 low. The bulls even pushed the price above the $19,200 resistance zone. It is now trading above $19,000 and 100 hour simple moving average.

A key contracting triangle is also forming on the hourly chart of the BTC/USD pair with support near $19,200. Bitcoin price is showing some positive signs above the $19,000 level.

On the upside, immediate resistance is near the $19,475 level. It is near the 76.4% Fib retracement level of the downward move from the $19,888 swing high to the $18,138 low. Another major resistance is located near the $19,680 level.

Source: BTCUSD on TradingView.com

A close above the $19,680 level may start a new rally to $20,000. Any further gains could send the price to the $20,500 resistance zone.

Another BTC decline?

If Bitcoin fails to recover above the $19,680 zone, a new decline may begin. Immediate downside support is near the $19,200 zone and the lower trend line of the triangle.

Another major support is near the $19,000 level and the 100 hourly SMA. A clear move below the $19,000 zone could set the pace for a fresh decline. In this case, the price may test the $18,500 level as well.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bullish zone.

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

Major support levels – $19,200, followed by $19,000.

Major resistance levels – $19,500, $19,680 and $20,000.

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