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Bitcoin Price Analysis: BTC Correcting Gains, Key Support Nearby

Summary:
Bitcoin price traded to a new 2020 high at ,919 before correcting lower against the US Dollar.The price is trading below ,000, but it is still above the 55 SMA (H4) and the ,000 support.There is a connecting bullish trend line forming with support near ,050 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).The pair is likely to find a strong buying interest near the ,050 and ,000 levels.Bitcoin price is currently correcting gains from well above ,800 against the US Dollar. BTC must stay above ,000 to start a fresh increase in the near term.Bitcoin Price AnalysisIn the past few days, bitcoin price saw a strong increase above the ,000 level against the US Dollar. BTC even broke the ,500 resistance and settled well above the 55 simple moving

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  • Bitcoin price traded to a new 2020 high at $19,919 before correcting lower against the US Dollar.
  • The price is trading below $19,000, but it is still above the 55 SMA (H4) and the $18,000 support.
  • There is a connecting bullish trend line forming with support near $18,050 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair is likely to find a strong buying interest near the $18,050 and $18,000 levels.

Bitcoin price is currently correcting gains from well above $19,800 against the US Dollar. BTC must stay above $18,000 to start a fresh increase in the near term.

Bitcoin Price Analysis

In the past few days, bitcoin price saw a strong increase above the $19,000 level against the US Dollar. BTC even broke the $19,500 resistance and settled well above the 55 simple moving average (4-hours).

A new multi-month high was formed near $19,919 before it started a downside correction. The price traded below the $19,200 support level. There was a break below the 23.6% Fib retracement level of the key upward move from the $16,232 swing low to $19,919 high.

Bitcoin is now trading below the $18,800 support level and $18,750. An immediate support is near the $18,100 level and the 55 simple moving average (4-hours).

There is also a connecting bullish trend line forming with support near $18,050 on the 4-hours chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the key upward move from the $16,232 swing low to $19,919 high.

If there is a downside break below the trend line, 55 simple moving average (4-hours), and $18,000, there is a risk of a sharp decline. The next major support for the bulls could be near the $17,300 level.

Conversely, the price could start a fresh increase from $18,000. On the upside, the $18,750 and $18,800 levels are initial hurdles. A successful close above the $18,800 level may perhaps lead the price back above $19,000. The next major resistance is near the $19,500 level.

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin price is clearly approaching a key support at $18,000 and the 55 SMA (H4). Overall, the price is likely to find a strong buying interest near the $18,050 and $18,000 levels.

Technical indicators

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 50 level.

Key Support Levels – $18,100 and $18,000.

Key Resistance Levels – $18,800, $19,000 and $19,500.

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