Bitcoin price tries to recover, why 100 SMA is key

Bitcoin/USD pair corrected upwards from a low of $18,223. BTC climbed above $19,000 but is currently facing resistance near the 100 hourly SMA.

  • Bitcoin was trading as low as $18,223 before starting an upside correction.
  • The price remains below $20,000 and the 100 hourly simple moving average.
  • A key bearish trend line has formed with resistance near $19,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must clear the trendline and the 100 hourly SMA to continue higher towards $20,500.

Bitcoin price recovers above $19,000

bitcoin price Extend losses After it closed below $19,000. BTC broke the $18,500 support area and traded as low as $18,223.

Without testing the $18,000 area, the price started an upward correction. There is a steady rise above the $18,500 and $18,800 levels. The price was able to clear the 50% Fib retracement level of the retracement from the $20,198 high to $18,223 low.

Bitcoin price even surged above the $19,500 resistance.However, bears are active near $19,600 while 100 hour simple moving average.

There is also a key bearish trend line forming with resistance near $19,650 on the hourly chart of the BTC/USD pair. The trend line is near the 76.4% Fib retracement level of the decline from the $20,198 swing high to $18,223 low.

Source: BTCUSD on TradingView.com

On the upside, immediate resistance lies near $19,600 and the trendline. The next major resistance is near $20,000. Any more gains could push the price towards the $20,500 resistance zone. Furthermore, if the bulls continue to act, the price could test $21,200.

New drop for BTC?

If Bitcoin fails to continue above the $19,600 resistance, it could start a fresh decline. Immediate support on the downside is near $19,200.

The next major support is near $18,850. A clear break below the $18,850 and $18,800 levels could open the doors for a dip to the $18,223 low or even new lows.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major support levels – $19,200, followed by $18,850.

Major resistance levels – $19,600, $19,650 and $20,500.

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