Bitcoin price is currently showing bearish signs below $18,400 against the US Dollar. BTC remains at a risk of more downsides below the $18,000 and $17,800 levels.
Bitcoin Price Analysis
In the past few days, bitcoin price struggled to clear the $19,400 and $19,500 levels against the US Dollar. As a result, there was a bearish reaction in BTC below the $19,200 and $19,000 levels.
The price broke the 23.6% Fib retracement level of the main upward move from the $16,230 swing low to $19,920 high. Moreover, there was a break below a key contracting triangle with support near $19,020 on the 4-hours chart of the BTC/USD pair.
The pair is now trading well below $18,400 and the 55 simple moving average (4-hours). It is testing the $18,050 and $18,000 support levels. The 50% Fib retracement level of the main upward move from the $16,230 swing low to $19,920 high is also acting as a strong support.
If there is a downside break below the $18,050 and $18,000 support levels, bitcoin price could continue to move down. The next major support is near the $17,300 level (the last major breakout zone).
An intermediate support could be near $17,640. Conversely, the price could start a fresh increase from $18,000. On the upside, the $18,400 and $18,580 levels are initial hurdles. A successful close above the $18,580 level may perhaps lead the price back above $18,850.
The next major resistance for the bulls is near the $19,050 level. Any more gains could lead the price towards the main $19,400 hurdle.
Looking at the chart, bitcoin price is clearly approaching a key support at $18,000 and $18,050. Overall, the price is likely to continue lower if it breaks the $18,050 support zone in the near term.
4 hours MACD – The MACD is slowly gaining pace in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now well below the 40 level.
Key Support Levels – $18,050 and $17,640.
Key Resistance Levels – $18,400, $18,580 and $18,800.
Source: Read Full Article