Bulls have rallied BTC/USD to highs of $18,600 and could break higher if they hold prices at key levels
Bitcoin’s recovery from last week’s sell-off has seen bulls rally to highs near $18,700. Although the cryptocurrency remains vulnerable to a pullback to lows seen over the weekend, the technical picture offers bulls hope of retesting $19,500 if they hold key price levels.
Given the outlook, BTC bulls will be in a great position if they maintain the upside momentum seen in the past 48 hours.
BTC/USD key levels
Two analysts have pinpointed key price levels to watch after Bitcoin rebounded from lows of $16,200 to trade above $18,600.
According to Michael van de Poppe, the short term goal for BTC bulls is to keep prices above the $17,700—$17,850 levels. The analyst has noted that holding prices above these levels is key to preventing a bearish breakout that could see BTC/USD drop back to lows of $16,000. The level ($17,700-$17,850) is home to the 0.5 Fibonacci level ($17,814) of the move from $19,490 high to $16,218 low.
The next important price level is $18,253, which acted as a resistance/support area in the past month. If bears put up a strong rejection around this level, the pullback could include a spiral to the aforementioned lows.
However, a spike above $18,500 will open up a path to $19,000 and last week’s peak.
Another analyst, Josh Rager, has said that Bitcoin’s rebound in the past two days puts BTC/USD “between a couple of key levels on lower time frames”.
According to the trader, the key levels to watch are $18,265 and $18,800. A breakout above the latter could see bulls push to $19,300, while a breakdown risks undoing all the gains made over the weekend.
BTC/USD 4-hour chart
The 4-hour chart shows that BTC/USD is looking to breach resistance at the 0.786 Fibonacci level of the downswing from $19,490 high to $16,218 low at $18,713.
The area provides a key support/resistance line above which bulls can retest $19,386. If the uptrend takes prices above the hurdle, consolidation around the $19,500 level could provide the impetus for further upsides.
Conversely, a rejection of the prices at the time of writing could see BTC/USD retrace to the 0.618 Fibonacci and then the 0.5 Fib level— at $18,185 and $17,814, respectively.
At the time of writing, BTC/USD is trading around $18,643.
Where it trends next will largely depend on whether the price holds above or breaks below the key levels in the next few sessions.