Bitcoin pares gains, why 100 SMA could spark fresh gains

Bitcoin is struggling above the $21,500 resistance against the US Dollar. BTC is paring gains and could find support near the 100 hourly SMA.

  • Bitcoin climbed above $21,500 before facing sellers.
  • The price is now above $20,000 and the 100 hourly simple moving average.
  • There was a break above a key bullish trend line with support near $21,175 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair can find bids near the $20,000 area or the 100 hourly simple moving average.

Bitcoin price falls

Bitcoin price starts Upside correction Above the $20,000 resistance zone. There is a nice recovery wave above the $20,200 and $20,500 levels.

The price climbed from the $22,950 high to $17,600 low, the 61.8% Fib retracement level of the key downside.Finally, the price broke the $21,000 resistance and closed at 100 hour simple moving average.

However, bears are active above $21,500. A high was formed near $21,698 and the price started a downside correction.

There was a break below the 23.6% Fib retracement level of the $17,600 swing low to $21,698 high. Additionally, there was a break below a key bullish trend line with support near $21,175 on the hourly chart of the BTC/USD pair.

Prices are now below $21,000. Immediate resistance on the upside is near $20,550. The first major resistance is near $21,000 and $21,220.

Source: BTCUSD on TradingView.com

A clear break above $21,220 may require a move to $21,700. Any more gains could push the price towards the $22,200 level in the next few sessions.

BTC to lose more?

If Bitcoin fails to break the $21,220 resistance zone, it could continue to decline. Immediate support on the downside is near $20,000 and the 100 hourly SMA.

The next major support is near $19,650. It is close to the 50% Fib retracement level from the $17,600 swing low to $21,698 high. A break below the $19,650 support could restart the downtrend in the near term.

Technical indicators:

Hourly MACD – The MACD is now picking up pace in the bearish zone.

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

Major support levels – $20,000, followed by $19,650.

Major resistance levels – $20,500, $21,220 and $21,700.

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