TA: Bitcoin Stuck In Range, Why BTC Remains At Risk of A Sharp Correction
Bitcoin price failed again to clear the $18,800 resistance against the US Dollar. BTC is trading in a range and it could correct lower sharply if there is a break below $18,200.
- Bitcoin is still trading well below the key resistance area near the $18,700 and $18,800 levels.
- The price is now below $18,500 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $18,480 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could decline sharply if there is a clear break below $18,200 and $18,050.
Bitcoin Price is Showing a Few Bearish Signs
There was another attempt by bitcoin price to clear the $18,700 and $18,800 resistance levels. However, BTC bulls failed to gain strength, resulting in a fresh decline below the $18,600 level.
The price even broke the $18,500 level and settled below the 100 hourly simple moving average. Conversely, there were strong bullish moves in Ethereum and ripple, breaking the $600 and $0.60 resistance respectively.
Bitcoin price traded as low as $18,160 and it is currently consolidating in a range. There was a break above the $18,250 level. It even traded above the 23.6% Fib retracement level of the recent drop from the $18,782 high to $18,160 low.
Source: BTCUSD on TradingView.com
The price is now facing a strong resistance near the $18,450 level and the 100 hourly simple moving average. There is also a key contracting triangle forming with resistance near $18,480 on the hourly chart of the BTC/USD pair.
The triangle resistance is close to the 50% Fib retracement level of the recent drop from the $18,782 high to $18,160 low. If there is an upside break above $18,500, the price could make another attempt to clear the $18,700 and $18,800 resistance levels.
Downside Break in BTC?
If bitcoin fails to clear the $18,500 resistance, there is a risk of a downside break. An initial support is near the triangle lower trend line at $18,280.
A clear break below the triangle support might lead the price towards the $18,160 swing low. In the stated case, there is even a risk of more losses below the $18,000 support level in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just below the 50 level.
Major Support Levels – $18,280, followed by $18,160.
Major Resistance Levels – $18,500, $18,700 and $18,800.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
