The digital currency needs to overcome the $19,000 handle in order to stay elevated and extend the ascent
Bitcoin prices resumed the rally after some consolidation and failed corrective attempts. On Tuesday, the leading cryptocurrency by market capitalization touched the $19,000 figure for the first time since late-2017 when an all-time high just below $20,000 was registered. Despite the overbought conditions, the bulls stay in the game, suggesting the ascent will likely continue in the short- to medium-term.
The current dynamics in the BTCUSD pair points to the evidence of institutional demand for the first digital currency that continues to outperform the safe-haven gold as more and more investors see BTC as a better store of value. Furthermore, bitcoin volatility tends to wane over time, which implies further growth in demand from long-term investors could send the prices to fresh all-time highs.
In the immediate term, the digital currency needs to overcome the $19,000 handle in order to stay elevated and extend the rally. However, there is a possibility of a downside correction from this level that could act as a local resistance on the way to the $20,000 key barrier that now comes back into market focus for the first time in nearly three years.
If so, the nearest support should be expected at $18,600, followed by $18,300 and $18,000. Furthermore, if a retest of the mentioned hurdle fails to bring more gains, the breakdown that could follow may be solid and take the prices even below $18,000 as bitcoin looks very attractive for profit-taking at the current levels.
On the upside, there could be several obstacles on the way towards $20,000. If $19,000 turns into support, the next initial upside target could be expected at $19,300, followed by $19,600. On the four-hour timeframes, BTCUSD has climbed above the 20-SMA, suggesting the bulls may be not ready to give up just yet.