Bitcoin price is stuck in the key area, why the bulls are comfortable

Bitcoin price corrected lower below the $19,500 level against the US dollar. BTC remains in a key area, trading above the $19,000 support zone.

• Bitcoin failed to gain strength above $19,600 and corrected gains.
• The price is trading near $19,250 and the 100 hourly simple moving average.
• There was a break below an important bullish trend line with support near $19,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair may attempt another rise unless there is a clear move below the $19,000 support.

Bitcoin price remains supported

Bitcoin price made an attempt to gain momentum above the $19,500 resistance zone. BTC even rose above the $19,600 level, but there was no follow through.

The price formed a high near $19,696 and started a downside correction. There was a move below the $19,500 and $19,400 levels. Also, there was a break below an important bullish trend line with support near $19,400 on the hourly chart of the BTC/USD pair.

Bitcoin price traded as low as $19,110 and is currently trading in a range. It is trading near $19,250 and the 100 hourly simple moving average. There was a break above the 23.6% Fib retracement level of the recent decline from the $19,696 swing high to $19,110 low.

On the upside, an immediate resistance is near the $19,400 level. It is near the 50% Fib retracement level of the recent decline from the $19,696 swing high to the $19,110 low.

Source: BTCUSD on TradingView.com

The first major resistance is near the $19,680 level. A clear move above the $19,680 resistance could start a decent rally. In the indicated case, the price might test the $20,000 resistance. Any further gains could start a steady rise towards the $21,200 resistance zone.

Downside breakout in BTC?

If bitcoin fails to rise above the $19,400 resistance zone, it may continue to move lower. An immediate support on the downside is near the $19,100 zone.

The next major support is near the $19,000 zone. A downside break and close below the $19,000 support zone could start a major decline. In the indicated case, the price may decline towards the $18,500 support zone.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – RSI for BTC/USD is now below the 50 level.

Major support levels – $19,100, followed by $19,000.

Major resistance levels – $19,400, $19,680 and $20,000.