Bitcoin Jumps 5%, Why BTC Could Offer Trade Openings On Dips

Bitcoin gained momentum and broke the $19,000.500 resistance to the US dollar. BTC may face resistance in the near-term and could fall to $19 500.

  • Bitcoin rose above the $19,000.500 and $19,000.600 resistance levels.
  • The price traded above the $20,000 mark and the simple 100-hour moving average.
  • The hourly BTC/USD chart showed a rise above the key bearish trendline with resistance at $19,460 (data feed Kraken).
  • It was possible that the pair might have a breakthrough in the near term by testing the resistance zone at $20,500.

Bitcoin prices rise at a rapid pace

The Bitcoin price reached a level above $18,720. BTC experienced a steady increase, breaking the $19,000.500 resistance zone.

The hourly BTC/USD pairs chart showed a strong move that was above the key bearish trendline with resistance at $19,460. Even breaking the $20,000 resistance, the price settled higher than the simple 100-hour moving average.

Bitcoin reached the level of 76.4% Fib-retracement, which was the pivotal drop from the $20,000. swing high to the $18,735 lowest. The bulls were unable to push the price higher than the $20,500 resistance level.

It has achieved a new high near $20.450, and is consolidating its gains. The price is above 23.6% Fib Retracement of the increase in value from $18,738 to $20,450. The upside is that the price faces resistance at the $20,450 to $20,500 levels.

Bitcoin Price

Source: BTCUSD from TradingView.com

Near the $20,920 area is the next major resistance. Price could move higher if the resistance zone of $20,920 is breached. If the previous scenario is true, then the price might rise up to the $21,500 mark. Next comes resistance at the $22,200 mark.

BTC’s Latest Decline

Bitcoin could begin a new decline if it fails to break the $20,500 resistance level. Support for the downside lies near $20,000

Near the $19600 level, or 50% Fib Retracement of the recent rise from $18,738 swing lows to $20,450 highs, the next significant support is now. Below which, the price may decline significantly. The price could drop to $18,720 in the above scenario.

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 well above the 50 level.

Major Support Levels – $20,000, followed by $19,500.

Major Resistance Levels – $20,500, $20,920 and $21,500.

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