Bitcoin/USD is consolidating above the $20,000 area. BTC must clear the resistance at $20,800 to resume its uptrend in the near term.
- Bitcoin corrected gains and tested the $19,800 support area.
- The price is now above $20,000 and the 100 hourly simple moving average.
- A key bearish trend line has formed with resistance near $20,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to gain bullish momentum if it breaks the $20,550 and $20,800 resistance levels.
Bitcoin price faces resistance
Bitcoin price fails to surpass $21,700, Corrected earnings. There is a downside correction below the $21,000 support area.
The price fell from the $17,600 swing low to $21,700 swing high, below the 23.6% Fib retracement level. The bears even pushed the price below the $20,500 support area and the 100 hourly simple moving average.
However, the bulls are active above the $19,650 and $19,800 support levels. Bitcoin is also holding above the 50% Fib retracement level from the $17,600 swing low to $21,700 swing high.
It is now above the $20,000 level and 100 hourly simple moving average. Immediate resistance on the upside is near $20,550. There is also a key bearish trend line forming with resistance near $20,550 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The first major resistance is near $20,800. Significant gains above $20,800 are likely to begin. The next major resistance is near $21,220, where the bulls are likely to gain strength to stabilize the advance.
BTC to lose more?
If Bitcoin fails to break the $20,800 resistance zone, it could start another decline. Immediate support on the downside is near $20,200 and the 100 hourly SMA.
The first major support is near $20,000. The main support is now near $19,650. A break below the $19,650 support is likely to resume the decline in the near term. In the aforementioned scenario, the price could slide towards the $18,800 level.
Hourly MACD – The MACD is now picking up pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – $20,000, followed by $19,650.
Major resistance levels – $20,800, $21,220 and $21,700.