Bitcoin price traded to a new monthly high at $14,081 before starting a downside correction against the US Dollar. BTC is now approaching the $13,600 and $13,500 support levels.
- Bitcoin extended its rise above the $13,500 and $13,800 resistance levels.
- The price traded as high as $14,081 and settled well above the 100 simple moving average (4-hours).
- There is a key rising channel forming with support near $13,600 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could resume its rise as long as it is trading above the $13,600 and $13,500 support levels.
Bitcoin Price Correcting Gains
This past week, bitcoin followed a bullish path above the $13,000 resistance against the US Dollar. The BTC/USD pair broke many hurdles near $13,500 and $13,800 to move further into a positive zone.
It traded as high as $14,081 and settled well above the 100 simple moving average (4-hours). Recently, the price started a downside correction and traded below $14,000 and $13,800. There was a break below the 23.6% Fib retracement level of the upward move from the $13,139 swing low to $14,081 high.
Bitcoin price is now approaching the $13,600 support zone. There is also a key rising channel forming with support near $13,600 on the 4-hours chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The channel support is close to the 50% Fib retracement level of the upward move from the $13,139 swing low to $14,081 high. On the upside, the $13,800 level is an initial hurdle for the bulls. The main resistance is now forming near the $14,000 level.
A successful daily close above the $14,000 resistance level might open the doors for more upsides. The next stop for the bulls could be $14,400 or even $14,650.
Downsides Could Be Limited in BTC
If bitcoin fails to clear regain strength above the $13,800 resistance, it could correct lower. An initial support is near the channel trend line zone and the $13,600 level.
The next major support is near the $13,500 level. A downside break below the $13,600 and $13,500 support levels could push the price towards the $13,000 support in the near term.
Technical indicators
4 hours MACD – The MACD for BTC/USD is likely to move into the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level.
Major Support Level – $13,600
Major Resistance Level – $13,800
