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.