Bitcoin Price Recovery Stops, Why This Barrier Could Trigger Another Fall

Bitcoin started an upside correction above $19,000 against the US dollar. BTC is now struggling to clear the $19,400 and $19,500 resistance levels.

• Bitcoin traded as low as $18,550 and started an upside correction.
• The price is now trading below the $19,500 level and the 100 hourly simple moving average.
• A major bearish trendline is forming with resistance near $19,310 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another decline unless there is a clear move above the $19,500 resistance.

Bitcoin price faces resistance

Bitcoin price started a major decline below the key support zone at $19,500. BTC gained momentum on a move below the $19,000 level and the 100 hourly simple moving average.

The price even traded below the $19,000 level and tested $18,500. A low was formed near $18,550 and the price recently started an upside correction. There was a move above the $19,000 resistance zone. The bulls pushed the price above the 23.6% Fib retracement level of the key drop from the $20,172 high to the $18,550 low.

However, the bears remained active near the $19,500 resistance zone. There is also a major bearish trend line forming with resistance near $19,310 on the hourly chart of the BTC/USD pair.

Bitcoin faced rejection near the 50% Fib retracement level of the key drop from the $20,172 high to the $18,550 low. It is now trading below the $19,500 level and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $19,300 level.

Source: BTCUSD on TradingView.com

The next major resistance is near the $19,500 level. A clear move above the $19,500 resistance could start a steady rise to $20,000. Any further gains could send the price towards the $20,500 resistance zone.

New decline in BTC?

If bitcoin fails to start a recovery wave above the $19,500 zone, it may continue to move downwards. An immediate support on the downside is near the $19,000 zone.

The next major support is near the $18,550 level. A downside break below the $18,550 support could trigger more downside. In the indicated case, the price could fall towards the $18,000 support.

Technical indicators:

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

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

Major support levels – $19,000, followed by $18,550.

Major resistance levels – $19,300, $19,500 and $20,000.