Bitcoin price traded to a new monthly high at $14,081 before starting a downside correction against the US Dollar. BTC is now approaching the $13,600 and $13,500 support levels.

• Bitcoin extended its rise above the $13,500 and $13,800 resistance levels.
• The price traded as high as $14,081 and settled well above the 100 simple moving average (4-hours).
• There is a key rising channel forming with support near $13,600 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
• The pair could resume its rise as long as it is trading above the $13,600 and $13,500 support levels.

Bitcoin Price Correcting Gains

This past week, bitcoin followed a bullish path above the $13,000 resistance against the US Dollar. The BTC/USD pair broke many hurdles near $13,500 and $13,800 to move further into a positive zone.

It traded as high as $14,081 and settled well above the 100 simple moving average (4-hours). Recently, the price started a downside correction and traded below $14,000 and $13,800. There was a break below the 23.6% Fib retracement level of the upward move from the $13,139 swing low to $14,081 high.

Bitcoin price is now approaching the $13,600 support zone. There is also a key rising channel forming with support near $13,600 on the 4-hours chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The channel support is close to the 50% Fib retracement level of the upward move from the $13,139 swing low to $14,081 high. On the upside, the $13,800 level is an initial hurdle for the bulls. The main resistance is now forming near the $14,000 level.

A successful daily close above the $14,000 resistance level might open the doors for more upsides. The next stop for the bulls could be $14,400 or even $14,650.

Downsides Could Be Limited in BTC

If bitcoin fails to clear regain strength above the $13,800 resistance, it could correct lower. An initial support is near the channel trend line zone and the $13,600 level.

The next major support is near the $13,500 level. A downside break below the $13,600 and $13,500 support levels could push the price towards the $13,000 support in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is likely to move into the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level.

Major Support Level – $13,600

Major Resistance Level – $13,800