Bitcoin prices began a downward correction at $20,500. This was against the US Dollar. BTC might see another surge after it clears both the SMA 100 and 21,000 levels.
- Bitcoin is currently recovering from losses in the $20.250 support zone.
- The daily simple moving average is at the hourly low of $20,700.
- On the hourly chart for the BTC/USD pair, there is a significant bearish trendline with resistance close to $20,680. (Data feed from Kraken).
- If the pair clears both the $100 hourly SMA, and $21,000 then it could make another move upward.
Bitcoin Price Remains Supported
After it fell below the $21,000 resistance level, Bitcoin prices began a downward correction. BTC fell below levels of $20,600, $20,500 and $21,500.
This decline was slower than the $20,000.500 level, and below the simple moving average of 100 hours. The $20,250 level was where the bulls were most active. An initial low of $20,250 was reached and prices began to move upwards. A wave arose above the levels of $20,400 or $20,500.
Bitcoin’s price rose to 23.6% Fib level, a retracement of the decline from the $21,074 swing low to the $20,250 high. Surprisingly, a resistance level is located near the $20,000.00 zone and 100-hourly simple moving average.
At the level of $20,700 is the initial major resistance. A major bearish trendline is also visible on the hourly BTC/USD chart with resistance close to $20,680. Trend line at 50% Fib level is the level where the decline from $21,074 swing high and $20,250 low can be traced.
Source: BTCUSD from TradingView.com
Next major resistance remains at $21,000. An obvious move higher than the $21,000 barrier could trigger a new surge. If the previous scenario is true, then the price might rise towards $22,500.
BTC: What are the Downsides?
Bitcoin could begin a downward trend if it fails to break the $20,000.00 resistance level. The $20,400 area is a support zone for the downside.
Near the $20,250 area is the next support. At $20,000 the main support is located. Below that level, there could be a greater decline. The price could fall to $19,200 in this scenario.
Indicators technical
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 – $20,400, followed by $20,250.
Major Resistance Levels – $20,600, $20,700 and $21,000.
