Bitcoin’s resistance to the US Dollar is near $21,000. BTC can rally if the resistance levels of $20,900 and 21,000 are cleared.
- Bitcoin shows some signs of life above and beyond its $20,000 support.
- The current price remains above $20,000 and the simple 100-hour moving average.
- On the hourly chart for the BTC/USD pair, there is an apparent bullish trend line connecting with support close to $20,000. (Data feed from Kraken).
- A new downtrend could be in store for the pair if the price drops below the $21,000 threshold.
Bitcoin price eye-upside break
After trading as low as $17600, the Bitcoin price began an upward correction. A decent recovery wave occurred above $18,500, $19,000 levels.
Price reached 50% Fib Retracement of main drop, from $22,951 high and $17,600 low. It even crossed the $20,000 and 100 hourly moving averages. A connecting bullish trendline is also visible on the hourly BTC/USD pairs chart with support close to $20,275.
The bears have defended major gains over the $20,500 mark. Bitcoin is struggling to hold the fib retracement level at 61.8% for the primary drop from $17.600 high to $22,951 low. Near the $20,800 mark is a resistance to the upside. It is located between the $20,900- and $21,000 levels.
Source: BTCUSD from TradingView.com
The price could rise to $21,800 if it moves above $21,000. In the following sessions, further gains may push the price up to $22,200.
BTC’s Latest Decline
It could lead to a further decline if bitcoin does not clear the $21,000 resistance area. The trend line and near the $20275 level provide immediate support for the downside.
Next major support will be near the $20,000 and 100 hourly SMA levels. Unexpected falls below $20,000 could lead to another drop. If the previous scenario is true, then the price might reach $18,800.
Technical indicators
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $20,275, followed by $20,000.
Major Resistance Levels – $20,900, $21,000 and $22,000.