Bitcoin Stuck In A Crucial Range, Why $19.5K Is The Key

Bitcoin price is still trading in a broad range below the $19,500 resistance against the US Dollar. BTC must gain strength above $19,500 to start a fresh rally in the near term.

  • Bitcoin is facing a strong resistance near the $19,500 and $19,580 levels.
  • The price is currently trading above the $19,000 support and the 100 hourly simple moving average.
  • There is a new important bearish trend line forming with resistance at $19,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to remain in a range, with high chances of an upside break above $19,500.

Bitcoin Price is Facing Hurdles

In the past few days, there were mostly range moves in bitcoin price below $19,500 and $19,600. BTC made a couple of attempt to gain strength above $19,400, but it failed to extend its rise.

The recent high was formed near $19,407 before the price moved lower in a range. A low is formed near $18,889 before the price corrected higher. It broke the 50% Fib retracement level of the recent decline from the $19,407 high to $18,889 low.

Bitcoin is now trading above the $19,000 support and the 100 hourly simple moving average. It is also testing the 61.8% Fib retracement level of the recent decline from the $19,407 high to $18,889 low.

An initial resistance is near the $19,280 level. There is also a new important bearish trend line forming with resistance at $19,350 on the hourly chart of the BTC/USD pair. A clear break above the trend line resistance could lead the price towards the main $19,500 resistance zone. To gain bullish momentum, the price must close above $19,500 and clear $19,580.

Bearish Wave in BTC?

If bitcoin fails to clear the $19,350 resistance zone, it could react to the downside. An initial support is near the $19,100 level and the 100 hourly simple moving average.

The first major support is near $19,000, followed by the $18,900 level. Any more losses might increase pressure on the bulls and the price might decline towards $18,500 in the near term.

Technical indicators:

Hourly MACD – The MACD is struggling to gain momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently sliding and it is just below the 50 level.

Major Support Levels – $19,000, followed by $18,900.

Major Resistance Levels – $19,350, $19,500 and $19,580.

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