Bitcoin continues to consolidate above the $20,000 level against the US Dollar. To restart growth, Bitcoin must overcome the $20 800 resistance.
- Bitcoin has corrected its gains and tested $19,800 as a support zone.
- It is currently above the $20,000 mark and the simple 100-hour moving average.
- On the hourly chart for the BTC/USD pair, there is a bearish trend line that forms with resistance at $20,550 (data feed Kraken).
- Bullish momentum could be gained if the pair can clear resistances levels $20,550-20,800.
Bitcoin Price Faces Resistance
Bitcoin’s price did not increase above $21,700 but it corrected its gains. The Bitcoin price fell below $21,000 support.
Price fell below 23.6% Fib level of upward movement from $17,600 swing lows to $21,700 swing highs. Even the 20,500 support level and 100-hourly simple moving average were pushed below by the bears.
But, bulls were active over the $19650 and $19800 support levels. Bitcoin also maintained above 50% Fib levels of its upward movement from $17,600 swing lows to $21,700 swing highs.
Now, it is above the $20,000 mark and the 100-hourly simple moving mean. Near the $20,550 area is an immediate support on the upside. On the hourly chart for the BTC/USD pair, there is a bearish trend line that forms with resistance at $20,550.
Source: BTCUSD at TradingView.com
At the $20,000.800 level is where you will find major resistance. An increase of at least 20% could be possible if the price moves above $20,800. Near the $21,220 mark is the next significant resistance. Above which bulls could gain strength to continue their steady rise.
BTC Losses:
It could fall further if bitcoin does not clear the $20,000.00 resistance zone. Support for bitcoin is located near the 20,200 level. The 100-hourly SMA provides immediate support.
Nearly $20,000 is the first major support. Main support lies now at the $19650 level. In the short term, a downside breakout below $19650 could trigger a reversal of the decline. The price could slide to $18,800 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 – $20,000, followed by $19,650.
Major Resistance Levels – $20,800, $21,220 and $21,700.
