The price of bitcoin made an effort to build momentum over the resistance zone, located around $19,500, a few days ago. In fact, Bitcoin’s price even rose beyond $19,600 for a brief period, but there was no further movement.
After reaching an all-time high close to $19,696, the price began to decline. The price dropped below $19,500 and then $19,400. On the hourly chart of the BTC/USD pair, there was a breach below a crucial bullish trend line that had support at $19,400.
The bitcoin price dropped to $19,110 at one point, which is presently fluctuating. The price now fluctuates close to $19,250 and the 100 hourly simple moving average. Above the 23.6% Fibonacci retracement level of the current drop from the swing high of $19,696 to the low of $19,110, there was a break out to the upside.
Near the level of $19,400 is where buyers and bulls will encounter their first obstacle. It is near the 50% Fib retracement level of the latest drop, which began at the swing high of $19,696 and ended at the low of $19,110.
Further, near the level of $19,680 is where traders will encounter their first significant barrier. A decisive rise over the $19,680 resistance level might trigger a respectable price gain. The price may try to break over the $20,000 resistance level in the scenario described. If there are any additional increases, this might begin a continuous climb toward the $21,200 barrier.
Break in the Downtrend for Bitcoin?
If bitcoin cannot break above the resistance zone around $19,400, the price may continue to go downward. The region close to the $19,100 zone provides short-term support for the market.
The region close to $19,000 is the next significant area of support. A considerable drop might get underway if the price of bitcoin breaks and stays below the $19,000 support zone. As it falls, the price may move closer to the support zone in the scenario presented, around $18,500.
Technical indicators:
The MACD is presently gaining velocity in the bullish zone after losing pace earlier.
RSI (Relative Strength Index) for the Hourly Timeframe – Currently, the RSI for BTC/USD is located below the threshold of 50.
The Major Support Levels are at $19,100, then $19,000, respectively.
There are three major resistance levels located at $19,400, $19,680, and $20,000 respectively.
