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The price of bitcoin has been trading at a new multi-month high near $ 18,850 against the US dollar. BTC is now consolidating gains (as ripple has risen 35%) and is preparing for the next big move.
- Bitcoin traded above the $ 18,000 resistance and nearly tested the $ 19,000 level.
- The price is now consolidating above $ 18,000 and the simple moving average of 100 (4 hours).
- There is a key contraction triangle forming with resistance near $ 18,800 on the 4-hour chart of the BTC / USD pair (data feed from Kraken).
- The pair could rise further above $ 18,800 or correct below the $ 17,350 level.
Bitcoin’s price is consolidating the gains
Last week, bitcoin extended its rise above the $ 17,500 and $ 18,000 resistance levels against the US dollar. The BTC / USD pair even broke above the $ 18,500 level and traded well above the simple moving average of 100 (4 hours).
It traded near the $ 19,000 level and formed a new multi-month high at $ 18,853. The price is currently consolidating gains below the $ 18,800 level, while some altcoins such as Ripple and Ethereum have gained bullish momentum.
Initial support for bitcoin is near the $ 18,450 level. It is close to the 23.6% Fib retracement level of the upward wave from the swing of the low of $ 17,344 to the high of $ 18,853.
Source: BTCUSD on TradingView.com
A key contraction triangle with resistance near $ 18,800 appears to be forming on the 4-hour chart of the BTC / USD pair. If there is a break to the upside above the resistance of the triangle, the price could start a new rally in the coming sessions.
The next immediate resistance is near the $ 19,000 level. A correct close above the $ 19,000 level could open the door for a major rise towards the $ 19,400 and $ 19,550 levels.
Downward correction in BTC?
If bitcoin fails to break out of the $ 18,800 resistance, it may correct below. The first key support is found near the triangle’s lower trend line and $ 18,400.
The next major support is near the $ 18,000 level or the 50% Fib retracement level of the upward wave from the low of $ 17,344 to the high of $ 18,853. Any further losses could possibly push the price back towards the $ 17,350 support zone in the coming days.
Technical indicators
4-hour MACD – The MACD for BTC / USD is slowly losing momentum in the bullish zone.
4-Hour RSI (Relative Strength Index) – The RSI for BTC / USD is correcting below the 70 level.
Main Support Level: $ 18,450
Major Resistance Level: $ 18,800
