Bitcoin/USD started an upward correction from the $17,600 area. BTC is now facing strong resistance near $20,500 and $21,000.
- Bitcoin was able to recover losses from the $17,600 support area.
- The price is still below the $20,000 level and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $19,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains at risk of another downside unless it closes above the $21,000 resistance.
Bitcoin Price Steady Recovery
Bitcoin price follows a bearish path and drops sharply below $20,000 support zone. It fell more than 10% and even surged below $18,000.
A low was formed near $17,600 before the price started an upside correction. There was a rebound above the $18,000 and $18,500 resistance levels. Furthermore, there was a break above a key bearish trend line with resistance near $19,200 on the hourly chart of the BTC/USD pair.
Bitcoin rose from a high of $22,950 to a low of $17,600, breaking the 50% Fib retracement level. The price even surged above $20,000 and the 100 hourly simple moving average.
However, bears are active near $20,500 and $20,750. The 61.8% Fib retracement level of the key decline from the $22,950 high to $17,600 low also acts as resistance.The price is now below the $20,000 level, while 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
Immediate resistance on the upside is near $20,200. The first major resistance is near $20,500. Any more gains could push the price towards the $21,000 level. A close above $21,000 could set the stage for bigger gains.
New drop for BTC?
If Bitcoin fails to break the $20,500 resistance zone, it could start a fresh decline. Immediate support on the downside is near $19,500.
The next major support is near $18,800. A break below the $18,800 support could trigger a sharp decline. In the aforementioned scenario, the price could test $17,600.
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level.
Major support levels – $19,500, followed by $18,800.
Major resistance levels – $20,200, $20,500 and $21,000.