Bitcoin Price Analysis: BTC Correcting Gains, Key Support Nearby

• Bitcoin price traded to a new 2020 high at $19,919 before correcting lower against the US Dollar.


• The price is trading below $19,000, but it is still above the 55 SMA (H4) and the $18,000 support.


• There is a connecting bullish trend line forming with support near $18,050 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).


• The pair is likely to find a strong buying interest near the $18,050 and $18,000 levels.

Bitcoin price is currently correcting gains from well above $19,800 against the US Dollar. BTC must stay above $18,000 to start a fresh increase in the near term.

Bitcoin Price Analysis

In the past few days, bitcoin price saw a strong increase above the $19,000 level against the US Dollar. BTC even broke the $19,500 resistance and settled well above the 55 simple moving average (4-hours).

A new multi-month high was formed near $19,919 before it started a downside correction. The price traded below the $19,200 support level. There was a break below the 23.6% Fib retracement level of the key upward move from the $16,232 swing low to $19,919 high.

Bitcoin is now trading below the $18,800 support level and $18,750. An immediate support is near the $18,100 level and the 55 simple moving average (4-hours).

There is also a connecting bullish trend line forming with support near $18,050 on the 4-hours chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the key upward move from the $16,232 swing low to $19,919 high.

If there is a downside break below the trend line, 55 simple moving average (4-hours), and $18,000, there is a risk of a sharp decline. The next major support for the bulls could be near the $17,300 level.

Conversely, the price could start a fresh increase from $18,000. On the upside, the $18,750 and $18,800 levels are initial hurdles. A successful close above the $18,800 level may perhaps lead the price back above $19,000. The next major resistance is near the $19,500 level.

Bitcoin Price

Looking at the chart, bitcoin price is clearly approaching a key support at $18,000 and the 55 SMA (H4). Overall, the price is likely to find a strong buying interest near the $18,050 and $18,000 levels.

Technical indicators

4 hours MACD – The MACD is slowly gaining pace in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now well below the 50 level.

Key Support Levels – $18,100 and $18,000.

Key Resistance Levels – $18,800, $19,000 and $19,500.

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