How Bitcoin Price Could Setup A Strong Surge Above $19.5K
Bitcoin price started a steady recovery from the $18,580 swing low against the US Dollar. BTC is currently attempting an upside break and it could rally above $19,500.
- Bitcoin is rising steadily above the $18,800 and $19,000 resistance levels.
- The price is now trading nicely above the $19,000 resistance and the 100 simple moving average (4-hours).
- There is a key contracting triangle forming with resistance near $19,200 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong surge if there is a close above $19,200 and $19,300.
Bitcoin Price is Attempting Upside Break
This past week, bitcoin saw a couple of swing moves from the $19,500 resistance against the US Dollar. The BTC/USD pair even broke the $19,000 support, but it remained well bid above the 100 simple moving average (4-hours).
The recent swing low was formed near $18,581 before the price started a decent upward move. There was a break above the $18,800 resistance level. The price even moved above the 50% Fib retracement level of the downward move from the $19,575 swing high to $18,581 swing low.
Bitcoin price is now trading nicely above the $19,000 resistance and the 100 simple moving average (4-hours). It is facing a strong resistance near the $19,200 level. There is also a key contracting triangle forming with resistance near $19,200 on the 4-hours chart of the BTC/USD pair.
The triangle resistance is close to the 61.8% Fib retracement level of the downward move from the $19,575 swing high to $18,581 swing low.
A successful break and close above the triangle resistance could start a strong surge above the $19,300 and $19,400 levels. The next key resistance is near $19,500, above which the bulls might aim $20,000.
Another Drop in BTC?
If bitcoin fails to clear the $19,200 and $19,300 resistance levels, it could start a fresh decline. An initial support is near the $19,000 level.
The first key support is near the triangle lower trend line at $18,800. The next major support is near the $18,500 level and the 100 simple moving average (4-hours), below which there could be a sharp decline.
Technical indicators
4 hours MACD – The MACD for BTC/USD is slowly gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is rising and it is above the 50 level.
Major Support Level – $18,800
Major Resistance Level – $19,200
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow