Bitcoin Consolidates Near Key Marks, Can Bulls Succeed

Bitcoin is struggling near the $21,000 resistance against the US Dollar. BTC could rally if the $20,900 and $21,000 resistance levels are cleared.

  • Bitcoin is showing some positive signs above the $20,000 support.
  • The price is still above the $20,000 level and the 100 hourly simple moving average.
  • There is a connecting bullish trend line forming with support near $20,275 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • If it stays below the key $21,000 resistance zone, the pair could start a fresh decline.

Bitcoin price rises to breakout

Bitcoin price starts Upside correction After it traded as low as $17,600. There is a nice recovery wave above the $18,500 and $19,000 levels.

The price surpassed the 50% Fib retracement level of the major decline from the $22,951 high to $17,600 low. The price even broke the $20,000 level, 100 hourly simple moving average. There is also a connecting bullish trend line forming with support near $20,275 on the hourly chart of the BTC/USD pair.

However, the bears are now defending major gains above the $20,500 area. Bitcoin is also struggling near the 61.8% Fib retracement level of the major decline from a high of $22,951 to a low of $17,600. Immediate resistance on the upside is near $20,800. The first major resistance is near $20,900 and $21,000.

Source: BTCUSD on TradingView.com

A clear break above $21,000 could even push the price towards $21,800. Any more gains could push the price towards the $22,200 level in the next few sessions.

New drop for BTC?

If Bitcoin fails to break the $21,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near $20,275 and the trendline.

The next major support is near $20,000 and the 100 hourly SMA. A break below the $20,000 support could trigger another decline. In the stated scenario, the price could test $18,800.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major support levels – $20,275, followed by $20,000.

Major resistance levels – $20,900, $21,000 and $22,000.

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