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.
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.