TA: Bitcoin Signaling Downturn, Why BTC Could Trade To New Monthly Low
Bitcoin price is showing bearish signs below $18,050 against the US Dollar. BTC is now likely to continue lower and it could even trade below $17,500
- Bitcoin is showing a few bearish signs below the $18,200 and $18,500 resistance levels.
- The price is now trading well below the $18,500 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $18,380 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to break the $17,644 swing low and continue lower in the near term.
Bitcoin Price is Showing Bearish Signs
After struggling to clear the $18,600 resistance, bitcoin price started a steady decline. A high was formed near $18,640 before BTC price traded below the $18,400 level.
The bulls seem to have lost control since the price is now trading well below the $18,500 level and the 100 hourly simple moving average. There was a break below the 50% Fib retracement level of the upward move from the $17,644 low to $18,640 swing high.
The price is trading below the $18,000 level and signaling more losses. It is also below the 76.4% Fib retracement level of the upward move from the $17,644 low to $18,640 swing high.
Source: BTCUSD on TradingView.com
There is also a major bearish trend line forming with resistance near $18,380 on the hourly chart of the BTC/USD pair. On the downside, the $17,644 swing low is a short-term support zone. If there is a downside break below the recent low, there is a risk of a sharp decline below the $17,500 level. The next key support is near the $17,200 level.
Upsides Capped in BTC?
If bitcoin starts a short-term upward move, it might struggle to clear the $18,000 resistance level. The first major resistance is near the $18,200 level.
The main resistance is now forming near the trend line and $18,400. A clear break above $18,400 and $18,500 could be very tough in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.
Major Support Levels – $17,650, followed by $17,200.
Major Resistance Levels – $18,000, $18,200 and $18,400.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
