Bitcoin price climbed higher towards $18,400 before there was a bearish reaction. BTC is now trading near a major support at $17,550 and might bounce back.
Bitcoin broke the $18,000 resistance zone before there was a downside correction.
The price is trading above $17,500 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $17,580 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase unless it trades below the 100 hourly SMA.
Bitcoin Price Remains Supported
Bitcoin price extended its increase above the $17,800 resistance zone. BTC even climbed above the $18,000 resistance zone and settled well above the 100 hourly simple moving average.
The price traded as high as $18,387 before there was a bearish reaction. The Fed increased interest rates by 0.5%, sparking sharp moves in the market. BTC price reacted the downside and traded below the $18,000 support zone. There was a clear move below the 23.6% Fib retracement level of the upward move from the $16,880 low to $18,387 high.
However, bitcoin price is trading above $17,500 and the 100 hourly simple moving average. It is holding the 50% Fib retracement level of the upward move from the $16,880 low to $18,387 high.
There is also a key bullish trend line forming with support near $17,580 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $17,900 level. The first major resistance is near the $18,000 zone, above which the price may perhaps revisit the $18,400 zone.
The next major resistance is near $18,500, above which the price might gain pace and rise towards the $19,200 zone in the near term.
Downside Break in BTC?
If bitcoin fails to clear the $18,000 resistance, there could be more downsides. An immediate support on the downside is near the $17,580 level and the trend line support.
The next major support is near the $17,400 zone and the 100 hourly simple moving average. A downside break below the $17,400 support might call more losses. In the stated case, the price could decline towards the $16,800 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $17,580, followed by $17,400.
Major Resistance Levels – $17,900, $18,000 and $18,500.
