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Bitcoin Near Crucial Juncture: Why BTC Could Surge Above $18.8K

PARIS, FRANCE - APRIL 03: In this photo illustration, a visual representation of the digital Cryptocurrency, Bitcoin is displayed on April 03, 2019 in Paris, France. Bitcoin is an electronic money that has seen an incredible increase in 2017, its price has reached 20,000 euros. But, while cryptocurrency has been trading for some months around 3200 to 3500 euros, it has risen to 5000 euros since yesterday. According to one analyst, this move would be linked to a single buyer who would have passed a colossal order to make up the course. (Photo by Chesnot/Getty Images)

Bitcoin price traded to a new multi-month high close to $18,850 against the US Dollar. BTC is now consolidating gains (while ripple surged 35%) and preparing for the next major move.

  • Bitcoin traded above the $18,000 resistance and almost tested the $19,000 level.
  • The price is now consolidating above $18,000 and the 100 simple moving average (4-hours).
  • There is a key contracting triangle forming with resistance near $18,800 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair could either rally further above $18,800 or it might correct lower towards the $17,350 level.

Bitcoin Price is Consolidating Gains

This past week, bitcoin extended its rise above the $17,500 and $18,000 resistance levels against the US Dollar. The BTC/USD pair even cleared the $18,500 level and settled well above the 100 simple moving average (4-hours).

It traded close to the $19,000 level and formed a new multi-month high at $18,853. The price is currently consolidating gains below the $18,800 level, while a few altcoins such as ripple and Ethereum gained bullish momentum.

An initial support for bitcoin sits near the $18,450 level. It is close to the 23.6% Fib retracement level of the upward wave from the $17,344 swing low to $18,853 high.

Bitcoin Price

Source: BTCUSD on TradingView.com

It seems like there is a key contracting triangle forming with resistance near $18,800 on the 4-hours chart of the BTC/USD pair. If there is an upside break above the triangle resistance, the price could start a fresh rally in the coming sessions.

The next immediate resistance is near the $19,000 level. A proper close above the $19,000 level might open the doors for a larger increase towards the $19,400 and $19,550 levels.

Downside Correction in BTC?

If bitcoin fails to clear the $18,800 resistance, it could correct lower. The first key support is near the triangle lower trend line and $18,400.

The next major support is near the $18,000 level or the 50% Fib retracement level of the upward wave from the $17,344 swing low to $18,853 high. Any further losses may perhaps lead the price back towards the $17,350 support zone in the coming days.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly losing momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower from the 70 level.

Major Support Level – $18,450

Major Resistance Level – $18,800

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