Bitcoin faces crucial test at $18,000 resistance level

The price of Bitcoin has been on the rise recently, with the cryptocurrency climbing towards $18,400 before encountering a bearish reaction. At the time of writing, BTC is trading near a major support level at $17,550.

After breaking the $18,000 resistance zone, there was a slight downside correction. However, the price is still trading above $17,500 and the 100 hourly simple moving average. A key bullish trend line is also forming with support near $17,580 on the hourly chart of the BTC/USD pair.

If the pair can start a fresh increase, it could potentially break through the $18,000 resistance level once again. However, if it fails to do so and instead trades below the 100 hourly simple moving average, there could be further downside. In this case, immediate support on the downside is near the $17,580 level and the trend line support.

The next major support level is near the $17,400 zone and the 100 hourly simple moving average. A downside break below this level could lead to even more losses for the cryptocurrency. In this scenario, the price could decline towards the $16,800 support in the near term.

Looking at the technical indicators, the hourly MACD is gaining pace in the bearish zone, while the hourly RSI for BTC/USD is now below the 50 level. This indicates that the bearish pressure is increasing and a further decline could be on the horizon.

Overall, it remains to be seen whether Bitcoin will be able to break through the $18,000 resistance level and continue its upward trajectory. In the short term, the major support levels to watch are $17,580 and $17,400, while the major resistance levels are $17,900, $18,000, and $18,500.

One possible outcome is that the price of Bitcoin will continue to rise, with the bullish trend line providing support and allowing the cryptocurrency to break through the $18,000 resistance level once again. This could potentially lead to further gains and even an attempt at reaching the all-time high of around $20,000.

On the other hand, if Bitcoin fails to clear the $18,000 resistance and instead continues to trade below the 100 hourly simple moving average, there could be further downside. In this case, the cryptocurrency could decline towards the $17,400 support level, with a potential break below this level leading to even more losses.

In the long term, the future of Bitcoin remains uncertain. The cryptocurrency has had its ups and downs over the years, with periods of rapid growth followed by steep declines. It remains to be seen whether it will be able to sustain its current upward trajectory or if it will fall back down again.

Overall, the next few days and weeks will be crucial for the price of Bitcoin. Whether it will continue to rise or fall will depend on a variety of factors, including market sentiment and the actions of investors and traders. For now, all eyes will be on the $18,000 resistance level and whether the cryptocurrency can break through it and continue its upward trend.