Bitcoin price traded to a new multi-month high close to $18,850 but now consolidating gains for the next major move

Bitcoin price traded to a new multi-month high close to $18,850 but now consolidating gains for the next major move

Not so long ago, Bitcoin price was trading to new multi-month highs near $ 18,850. However, at press time, Bitcoin is trading around $ 18,445, recording a 15% return over the past seven days.

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BTC/USD 4-hour chart | Source: TradingView

Bitcoin price was trading above the $ 18,000 resistance and nearly tested $ 19,000 but failed

Last week, Bitcoin extended gains above the $ 17,500 and $ 18,000 resistances. The BTC / USD pair even broke past $ 18,500 and settled above the 100 (4-hour) simple moving average.

It was trading close to $ 19,000 and formed a new multi-month high at $ 18,853. The price is currently consolidating gains below $ 18,800 levels, while some altcoins like XRP and Ethereum have gained momentum.

Initial support for bitcoin is located near $ 18,450. It is close to the 23.6% Fib retracement level of the upside wave from a swing low of $ 17.344 to a high of $ 18.853.

There appears to be a major contract triangle forming with resistance near $ 18,800 on the 4-hour chart of the BTC/USD pair. If there is a break above the triangle resistance, the price could initiate a new rally in the coming sessions.

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The next immediate resistance level is near $ 19,000. A suitable close above $ 19,000 could open the door for even bigger gains to $ 19,400 and $ 19,550 levels.

If Bitcoin fails to break through the $ 18,800 resistance, it could correct lower levels. The first major support is located near the lower trendline of the triangle and $ 18,400.

The next major support is near $ 18,000 or the 50% Fib retracement level of the upside wave from the $ 17,344 low to the $ 18,853 high. Any further loss could lead the price back to the $ 17,350 support in the coming days.

You can see the BTC price here.

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