TA: Bitcoin Recovery Capped, Why $18.6K Is A Major Breakout Zone

[Donken]

TA: Bitcoin Recovery Capped, Why $18.6K Is A Major Breakout Zone

Yesterday, we saw a sharp decline in bitcoin price below the $18,500 support level. BTC even extended its decline below the $18,000 support and settled below the 100 hourly simple moving average.

The decline gained pace below $18,000 and the price traded close to the $17,650 level. A low was formed near $17,644 and there was a strong recovery wave. The price climbed back above the $18,000 and $18,200 levels.

However, bitcoin struggled to clear the $18,600 resistance zone (the last key breakdown zone). A high is formed near $18,639 and the price is currently showing a few bearish signs. It is trading near the 23.6% Fib retracement level of the recent recovery from the $17,644 low to $18,639 high.

The next major support is near the $18,150 level. It is close to the 50% Fib retracement level of the recent recovery from the $17,644 low to $18,639 high.

On the upside, the price is facing hurdles near the previous support at $18,500 and $18,600. There is also a key bearish trend line forming with resistance near $18,560 on the hourly chart of the BTC/USD pair. A clear break above the $18,500 and $18,600 resistance levels could open the doors for a push towards the $19,000 level.


Read more here