Bitcoin Extends Rally, Why Bulls Remain In The Driver’s Seat
Bitcoin price rallied over 6% and it broke the $17,500 resistance against the US Dollar. BTC is consolidating gains and it seems like the bulls are aiming more upsides above $18,000.
- Bitcoin extended its rise above the $17,200 and $17,500 resistance levels.
- The price traded to a new monthly high at $17,895 and settled above the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $17,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains well supported and it is likely to rally further above the $18,000 resistance.
Bitcoin Price Gains 6%
After a sharp rise above the $17,000 resistance, bitcoin price started following a bullish path. BTC even surged above the $17,200 level to move further into a positive zone.
The price rallied over 6%, broke the $17,500 resistance, and settled well above the 100 hourly simple moving average. Bitcoin traded to a new monthly high at $17,895 and it is currently consolidating gains.
Source: BTCUSD on TradingView.com
It corrected below the 23.6% Fib retracement level of the recent surge from the $16,924 swing low to $17,895 high. However, the price remained well supported above the $17,500 level. It seems like there is a key contracting triangle forming with resistance near $17,800 on the hourly chart of the BTC/USD pair.
If there is a fresh break above the triangle resistance at $17,800, the price could rally further. The next major resistance is near the $18,000 level. Any further gains could open the doors for a rise towards the $18,400 level in the near term. An intermediate resistance sits near the $18,250 level.
Dips Supported in BTC?
If bitcoin fails to clear the triangle resistance or $17,850, there could be a short-term downside correction. An initial support is near the triangle support at $17,580.
The next major support is near the $17,410 level. It is close to the 50% Fib retracement level of the recent surge from the $16,924 swing low to $17,895 high. Any further losses may perhaps lead the price towards the $17,200 support level.
Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower, but it is well above the 60 level.
Major Support Levels – $17,580, followed by $17,400.
Major Resistance Levels – $17,800, $17,850 and $18,000.
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