Bitcoin News

Bitcoin Price Analysis: BTC/USD’s Correction Likely Over

Bitcoin price started a downside correction from $19,600 against the US Dollar. BTC/USD tested the $15,700 support and is currently recovering.

Key Talking Points

  • Bitcoin price after trading above the $19,600 level (data feed by Kraken) against the US Dollar found sellers and declined.
  • There was a break below a descending channel with support at $17,500 on the hourly chart of BTC/USD.
  • The pair found support around the $15,700 level and is currently moving back higher.

Bitcoin Price Chart Analysis

After a nasty upside move above the $19,600 level, bitcoin price faced strong sell offers against the US Dollar. The BTC/USD pair failed to test the $20K level and started a downside move below the $19,000 level.

The decline was substantial as the pair traded below the $18,000 and $17,500 support levels to close below the 100 hourly simple moving average.

During the downside move, the pair broke a descending channel with support at $17,500 on the hourly chart. It opened the doors for more losses and the price traded below the $16,000 level.

A low was formed at $15,772 from where the price started an upside recovery. It has moved above the 23.6% Fib retracement level of the last decline from the $18,950 high to $15,772 low.

However, bitcoin price is facing many resistances on the upside such as $17,000 and $17,260. The broken channel support may act as a resistance along with the 50% Fib retracement level of the last decline from the $18,950 high to $15,772 low.

Should the price continue to move higher, then the next major resistance could be $18,000 and the 100 hourly simple moving average, which is positioned at $18,500.

On the downside, an initial support is at $16,500. However, the most important support is near the $16,000 level and the last swing.

Overall, it seems like the price might extend the current recovery, but a break above the $18,000 level won’t be easy. The hourly RSI for BTC/USD is flat above 40, but with no major bullish signals.

safe traders and do not overtrade!

Aayush Jindal
About author

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets Reach Aayush via email: aayushjindal@ethereumworldnews.com
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