Analysis

TA: Bitcoin is Facing Uphill Task, Why Bears Could Gain Strength Below $19K

Bitcoin price broke the $ 19,200 resistance, but it is still struggling near $ 19,500 against the US Dollar. BTC could decline sharply if there is a clear break below $ 19,150 and $ 19,000.

  • Bitcoin is struggling to gain bullish momentum above $ 19,400 and $ 19,500.
  • The price is approaching the $ 19,150 support and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance at $ 19,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair struggled to capitalize and it is currently sliding from the $ 19,432 swing high.

Bitcoin Price is Attempting Upside Break

There was a steady increase in bitcoin price after a couple of spikes below $ 19,000. BTC broke the $ 19,000 resistance level and it even settled above the 100 hourly simple moving average.

More importantly, there was a break above a major bearish trend line with resistance at $ 19,150 on the hourly chart of the BTC/USD pair. The pair surpassed the $ 19,400 level, but there was lack of bullish momentum.

Bitcoin struggled to even test the $ 19,500 resistance level after the trend line break. A high is formed near $ 19,432 and the price is currently declining. It broke the 23.6% Fib retracement level of the recent wave from the $ 18,868 low to $ 19,432 high.

Bitcoin Price

Bitcoin Price

Source: BTCUSD on TradingView.com

The price is now approaching the $ 19,150 support and the 100 hourly simple moving average. The broken trend line at $ 19,150 and the 100 hourly simple moving average are providing support.

The 50% Fib retracement level of the recent wave from the $ 18,868 low to $ 19,432 high is also near the $ 19,150 level. As long as the price is above $ 19,150 and the 100 hourly SMA, it could attempt another upside break. The main resistance is still near $ 19,500, above which the price may possibly test $ 20,000.

Downside Break in BTC?

If bitcoin fails to stay above the $ 19,150 support and the 100 hourly simple moving average, it could decline sharply. An initial support is near the $ 19,000 level.

A proper close below the $ 19,000 support might increase pressure on the bulls and the bears are likely to gain traction. The next major support sits near the $ 18,500 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.

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

Major Support Levels – $ 19,150, followed by $ 19,000.

Major Resistance Levels – $ 19,400, $ 19,500 and $ 19,800.

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Technical analysis – NewsBTC

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