- Bitcoin price started a strong increase above the $18,000 and $18,500 resistance levels against the US Dollar.
- The price traded as high as $19,454 and it settled nicely above the 55 SMA (H4).
- There is a major bullish trend line forming with support near $18,400 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair is currently correcting gains, but dips are likely to be limited below $18,400.
Bitcoin price is trading in a nice uptrend above $18,500 against the US Dollar. BTC is likely to continue higher above $19,400 and aim a new all-time high in the near term.
Bitcoin Price Analysis
In the past few days, bitcoin price followed a strong uptrend above the $18,000 resistance against the US Dollar. BTC gained pace after it broke the $18,200 and $18,500 resistance levels.
The upward move was such that the price broke the $19,000 level and settled well above the 55 simple moving average (4-hours). A new multi-month high was formed near $19,454 before it started a downside correction.
The price traded below the $19,000 support level. There was a break below the 23.6% Fib retracement level of the recent upward move from the $18,070 swing low to $19,454 high. Bitcoin is now trading near the previous breakout zone at $18,800.
The bulls are also protecting the 50% Fib retracement level of the recent upward move from the $18,070 swing low to $19,454 high. There is also a major bullish trend line forming with support near $18,400 on the 4-hours chart of the BTC/USD pair.
If there is a downside break below the trend line support, the price could test the $18,200 level. The next major support is near another trend line, $18,000, and the 55 simple moving average (4-hours).
On the upside, the $19,050 and $19,100 levels are initial hurdles. A successful close above the $19,100 and $19,200 levels may perhaps lead the price back towards the $19,450 level. Any further gains might call for a test of the $20,000 level and a new all-time high.
Looking at the chart, bitcoin price is clearly trading in a bullish zone above the $18,000 support and the 55 SMA (H4). In the short-term, the price could correct a few points, but dips are likely to be limited below $18,400.
Technical indicators
4 hours MACD – The MACD is showing a few negative signs in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is still well above the 50 level.
Key Support Levels – $18,800 and $18,200.
Key Resistance Levels – $19,100, $19,450 and $20,000.
