Bitcoin/USD is showing positive signs above the $20,500 area. BTC could rally if there is a clear move above the $21,250 resistance zone.
- Bitcoin remains well supported above $20,000 and $20,500.
- The price is now above $20,500 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $20,450 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 $21,250 and $21,650 resistance levels.
Bitcoin price may pick up pace
Bitcoin price starts Downside correction Below the $20,500 level. The price also fell below $20,000, but the price stabilized near $19,750.
A low was formed near $19,750 and the price restarted. BTC was able to clear the $20,000 and $20,500 resistance levels. Furthermore, there was a break above a major bearish trend line with resistance near $20,450 on the hourly chart of the BTC/USD pair.
The pair climbed from the $21,698 swing high to $19,750 low, breaking the 50% Fib retracement level.Bitcoin is now above $20,500 while 100 hourly simple moving average.
Immediate resistance on the upside is near $21,250. It is close to the 76.4% Fib retracement level from the $21,698 swing high to $19,750 low. The next key resistance is near $21,650. A clear break above $21,650 could start a sharp rise.
Source: BTCUSD on TradingView.com
The next major resistance is near $22,200 and the bulls are likely to gain strength to move towards the $23,000 resistance.
New drop for BTC?
If Bitcoin fails to break the $21,250 resistance zone, it could start another decline. Immediate support on the downside is near $20,600 and the 100 hourly SMA.
The first major support is near $20,000. The main support is now near $19,750. A break below the $19,750 support could put a lot of pressure on the bulls in the near term. In the aforementioned scenario, the price could slide towards the $18,500 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 – $20,600, followed by $20,000.
Major resistance levels – $21,250, $21,650 and $23,000.