Bitcoin has been trading higher, and is now above the $20,000 mark against the US Dollar. BTC may surge in the event of a strong move higher than $20,580 or $20,730.
- Bitcoin shows some signs of life above and beyond the $20,000 support area.
- The price has traded at or above $20,000 and the 100-hourly simple moving mean.
- A major bullish trend line is emerging with support at $19,800 (data feeds from Kraken).
- A close above the level of $20,580 could trigger a significant upward movement.
Bitcoin Price Seems to be on the Rise
Bitcoin’s price held steady above $19500 support level. BTC reached a low of $19,750 and then began a new upward trend above the $20,000 resistance level.
The price moved steadily and climbed higher than the 50% Fib Retracement level for the downmove from the $19,750 high to the $20,732 swing low. Today, the price traded above $20,000 and the 100 hourly simple average.
A major bullish trendline is also in place with support close to $19,800 as per the hourly BTC/USD chart. Bitcoin prices are trading in the 20,500 area and near the 76.4% Fib level of the decline from the $20.732 swing high, to $19.750 low.
Source: BTCUSD at TradingView.com
The upside is that the price faces resistance at the $20,550-$20,580 levels. Next is resistance at the $20,730 level. If the price closes above the $20.730 resistance zone, it could lead to a significant increase. If this is the case, then the price could reach the $21,500 threshold. Next comes resistance at the $22,200 mark.
BTC’s Latest Decline
Bitcoin could begin a downtrend correction if it fails to break the $20,730 resistance level. The $20,200 level is a support area for the downside.
Now, the next significant support is located near $19 800 or the trendline zone. The price could rise to $19,000. If the support zone is reached below $19 800, it may be too late. There is the possibility of the price moving towards $18,750 in the above scenario.
Technical indicators
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $20,200, followed by $19,800.
Major Resistance Levels – $20,580, $20,730 and $21,200.
