Bitcoin price traded to a new multi-month high near $15,970 before correcting lower against the US Dollar. BTC is holding the $14,500 support and it could start another rally.
- Bitcoin started a sharp downside correction after trading close to the $16,000 resistance.
- The price corrected lower below $15,000, but it is still well above the 100 simple moving average (4-hours).
- There is a major contracting triangle forming with resistance near $15,250 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could resume its rally once it clears the $15,250 and $15,300 resistance levels.
Bitcoin Price is Holding Key Support
This past week, bitcoin started a strong surge above the $14,500 and $15,000 resistance levels against the US Dollar. The BTC/USD pair even rallied above $15,500 and settled well above the 100 simple moving average (4-hours).
It traded close to the $16,000 level and formed a new multi-month high at $15,971 before starting a sharp downside correction. There was a break below the $15,500 support level.
Bitcoin price declined below the 50% Fib retracement level of the upward move from the $13,558 swing low to $15,971 high. However, the bulls were able to defend the $14,500 support zone and the price remained well above the 100 simple moving average (4-hours).
<img alt="Bitcoin Price" class="alignnone size-full