Bitcoin price declined more than 5% and broke many supports near $18,500 against the US Dollar. BTC could correct higher, but upsides might face hurdles near $18,600.
- Bitcoin started a fresh decline after it failed to stay above the $19,000 support.
- The price traded close to the $18,000 support and settled below the 100 hourly simple moving average.
- There is a short-term contracting triangle forming with resistance near $18,320 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but the previous support at $18,500 and $18,600 might stop upsides.
Bitcoin Price is Correcting Gains
After many failed attempts to surpass $19,500 and $19,600, bitcoin price reacted to the downside. BTC broke the $19,000 support and settled below the 100 hourly simple moving average to move into a short-term bearish zone.
The price gained pace after it broke the key $18,600 and $18,500 support levels. The bears gained strength and they managed to push the price towards the $18,000 zone. A low is formed near $18,033 and the price is currently consolidating losses. An initial resistance is near the $18,300 zone or the 23.6% Fib retracement level of the recent decline from the $18,986 high to $18,033 low. There is also a short-term contracting triangle forming with resistance near $18,320 on the hourly chart of the BTC/USD pair.
Source:If there is an upside break above the triangle resistance, bitcoin price might recover above $18,350. The next major resistance is near the $18,500 level. It is close to the 50% Fib retracement level of the recent decline from the $18,986 high to $18,033 low.
The main resistance is near the $18,600 level (the recent breakdown zone). A close above the $18,600 level is must for a recovery wave towards the $19,000 level.