Bitcoin prices remained above $20,000 support. BTC continues to consolidate and may start a new rally once it crosses the $20,500 resistance area.
- Bitcoin was traded above the $20,000 threshold.
- It is currently trading at below 20.500, and it has fallen to the simple 100-hour moving average.
- A crucial bearish trend line is emerging with resistance at $20,500 (data feed Kraken).
- If the pair clears both the $100 hourly SMA (and $20,500), it could rally again.
Bitcoin Price Consolidates
Bitcoin prices began a downward correction below $20,600 levels and $20,500 levels. BTC traded even below the $20,000.25 level, and also settled below the simple 100-hour moving average.
But, bulls were very active around the $20,000 mark. An area of low volatility was found near $20,059; the market is currently consolidating losses. A minor rise was seen above the $20,000. It rose above 23.6% Fib level for the downmove from $20.865 swing high, to $20.060 low.
Bitcoin’s price currently trades below the $20,500 level and the simple moving index of 100 hours. Surprisingly, a resistance area is located near $20,350.
Near the $20,500 mark and the 100-hourly simple moving average is the first significant resistance. A crucial bearish trendline is also emerging with resistance close to $20,500 in the hourly charts of BTC/USD. Near the 50% Fib level of the decline from the $20.865 swing high, to the $20.060 low, the trend line.
Source: BTCUSD from TradingView.com
An obvious move over the $20,500 resistance area could trigger another steady uptrend. Next major resistance will be near $21,000. If the price breaks that, it could possibly rise towards $22,000.
BTC: More losses
It could be relegated to the $20,000.500 zone if bitcoin does not break through. Support for the downside lies near the $20,000.
Near the $20,000 area or the most recent low, the next significant support will be found. Price could drop further below $20,000 if there is a clear break of that support. This would mean that the price might fall towards $19 200.
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 $20,000.
Major Resistance Levels – $20,350, $20,500 and $21,000.
