Bitcoin is rising at a rate of $20,000 more than the US Dollar. Positive signs are being seen for Bitcoin and it could rise to $22,000, or even $25,000.
- Bitcoin continues to grow above the resistance level of $20,500 or $20,000 for Bitcoin.
- The price traded above $20,000 as well as the simple 100-hour moving average.
- A major contracting triangle is emerging with resistance close to $20,820 in the hourly chart on the BTC/USD pair. (Data feed from Kraken).
- If the resistance at $21,200 is broken, then the pair may rally.
Bitcoin price remains in uptrend
Bitcoin prices rose above $19,650 resistance and $20,000 support levels. BTC bulls managed to propel the price above the $19,650 and $20,000 resistance levels.
Yesterday we witnessed a bullish continuation pattern, with resistance at 20.300. It moved higher, clearing the resistance at $20,000. It cleared the $20,000.500 resistance, and it settled much higher than the simple moving average of 100 hours.
Near $21,021 was the high and now, the market is consolidating its gains. The price fell slightly below $20,800. Bitcoin prices fell below 23.6% Fib Retracement levels of the upward movement from $19,992 low to $21,021 peak.
The 100-hourly simple moving average and $20,000 are now the highest levels of trading. On the hourly chart for the BTC/USD pair, there is a significant contracting triangle with resistance at $20,820.
Source: BTCUSD at TradingView.com
Surprisingly, a resistance zone is located near the $20,000. At the $21,000 area, there is the initial major resistance. 221,200 might be the next significant resistance. The price could reach the $22,000 barrier if it moves clear above this resistance. Gains above the $21,200 resistance could lead to a gradual increase in the price towards the $25,000 zone.
Downside Correction in BTC?
It could cause a downtrend if bitcoin falls below the $21,200 resistance level. Support for the downside lies near the $20,000.
Near the $20,500 area is the next support. This support is at the half-way Fib retracement of the upward swing from the $19.992 swing low to the $21,021 peak. The $20,000 mark could be cleared if there is a downside breakout and the close below $20,000.
Hourly MACD – The MACD is now gaining 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 – $20,700, followed by $20,500.
Major Resistance Levels – $20,820, $21,200 and $22,000.