Bitcoin Remains In Downtrend, What Could Spark Sharp Upside

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Bitcoin
Blockonomics


Bitcoin is trading in a bearish zone below $19,500 against the US Dollar. BTC might start a sharp recovery wave if there is a move above the $19,500 resistance.

Bitcoin failed to gain pace above the $19,500 and $19,600 resistance levels.
The price is now trading below the $20,000 level and the 100 hourly simple moving average.
There is a crucial bearish trend line forming with resistance near $19,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh decline unless there is a move above the $19,500 resistance zone.

Bitcoin Price Eyes Upside Break

Bitcoin price started another decline below the $19,500 support zone. The price even traded below the $19,000 support zone and spiked below the $18,800 level.

A low was formed near $18,738 and the price is now consolidating losses. There was a minor upward move above the $19,000 resistance zone. The price climbed above the 23.6% Fib retracement level of the recent decline from the $20,500 swing high to $18,738 low.

However, the price is now facing a strong resistance near the $19,400 zone and the 100 hourly simple moving average. There is also a crucial bearish trend line forming with resistance near $19,500 on the hourly chart of the BTC/USD pair.

The trend line is close to the 50% Fib retracement level of the recent decline from the $20,500 swing high to $18,738 low.

Source: BTCUSD on TradingView.com

The next key resistance is near the $19,800 zone. A clear move above the trend line resistance and then $19,800 could push the price further higher. In the stated case, the price could rise towards the $20,500 level. The next major resistance sits near the $21,200 level.

Fresh Decline in BTC?

If bitcoin fails to clear the $19,500 resistance zone, it could start another decline. An immediate support on the downside is near the $19,000 level.

The next major support now sits near the $18,700 level, below which the price could decline heavily. In the stated case, the price may perhaps decline towards the $17,500 level.

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 below the 50 level.

Major Support Levels – $19,000, followed by $18,700.

Major Resistance Levels – $19,500, $19,800 and $20,500.



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