TA: Bitcoin Consolidating Gains, Why Close Below $17.5K Could Be Significant

Bitcoin worth surged in direction of the $18,500 stage earlier than correcting decrease in opposition to the US Greenback. BTC should keep above $17,500 for upside continuation within the close to time period.

  • Bitcoin rallied additional in direction of the $18,500 stage earlier than correcting decrease sharply.
  • The worth is holding the important thing $17,500 help and it’s nicely above the 100 hourly easy transferring common.
  • There’s a main contracting triangle forming with resistance close to $18,020 on the hourly chart of the BTC/USD pair (information feed from Kraken).
  • The pair may begin a contemporary rally if there’s a correct shut above $18,000 and $18,200.

Bitcoin Value Holding Key Helps

Yesterday, there was a pointy enhance in bitcoin worth above the $17,500 resistance stage. BTC climbed over 10% and it even broke the $18,000 stage. The worth traded to a brand new multi-month excessive close to $18,500 earlier than it began a pointy decline.

The worth crashed over $1,000 and it broke the $17,800 help. There was additionally a spike beneath the $17,500 help, however there was no shut beneath it. The latest swing low was fashioned close to $17,299 and the excessive was fashioned close to $18,107.

The worth is now consolidating beneficial properties beneath $18,000. There may be additionally a serious contracting triangle forming with resistance close to $18,020 on the hourly chart of the BTC/USD pair. The pair is testing the 23.6% Fib retracement stage of the latest wave from the $17,299 swing low to $18,107 excessive.

Supply: BTCUSD on TradingView.com

The primary main help appears to be forming close to the $17,700 stage and the triangle decrease pattern line. It’s near the 50% Fib retracement stage of the latest wave from the $17,299 swing low to $18,107 excessive.

If there’s a draw back break beneath the triangle help, the value may check the $17,500 help. A correct shut beneath the $17,500 help would possibly begin a robust decline within the coming days.

Contemporary Rally in BTC?

If bitcoin clears the triangle resistance after which the $18,107 swing excessive, it may rally once more. The following rapid hurdle is close to the $18,200 stage.

A correct observe by transfer above the $18,200 stage is prone to open the doorways for a bigger enhance. The following main resistance is close to $18,500 and $18,880.

Technical indicators:

Hourly MACD – The MACD is slowly dropping momentum within the bearish zone.

Hourly RSI (Relative Power Index) – The RSI for BTC/USD is at present nicely above the 50 stage.

Main Assist Ranges – $17,700, adopted by $17,500.

Main Resistance Ranges – $18,020, $18,200 and $18,500.

About Tom Greenly

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