Bitcoin prices fell to an all-time low during the week, before recovering against the US Dollar. BTC reached $19500. It could climb further to $20,000.
- Bitcoin was up almost 5% with a move clear above the $19,000.500 resistance zone.
- The 100-hourly simple moving average and price are both below $19,500.
- The hourly BTC/USD chart showed a breakout above the major bearish trendline with resistance at $19,150 (data feed Kraken).
- This pair shows bullish signs, and may extend gains beyond $20,000.
New Rally Starts for Bitcoin Prices
Bitcoin prices fell below $19,000 support level. Yesterday saw the release of US CPI data, showing an 8.2% rise. The increase in the US CPI data pushed BTC prices below $18,500.
The price dropped to the $18,200 level as the bears gained power. The bears were unable to drive the price lower. An area of near $18,142 was the lowest point and there was strong bullish response. Bullish momentum was created and the price climbed to $19,000.
The 50% Fib level for the downmove from the $18,142 high (the $20,443 swing high) to the low of $18,142 was cleared by Bitcoin. A breakout was seen at the hourly chart for the BTC/USD pair above a significant bearish trend line, with resistance close to $19,150.
The current price of the stock is trading at $19500, which is below its 100 hourly simple moving mean. It trades near the 76.4% Fib level of the decline from the $28,443 swing high and the $18,142 low.
Source: BTCUSD from TradingView.com
The $20,000 mark is an immediate resistance. Clear moves above the $20,000 resistance could push the price higher. Next is the $20,450 mark. Gains could continue to increase toward the $21,200 level.
BTC Supported Dips
It could cause a downtrend if bitcoin falls below the $20,000 resistance level. Support for the downside lies near $19,000.
Next major support will be near the $19200 area and the 100 hourly SMA. Selling pressure could be increased if the price falls below $19,200. The price may fall towards $18,500 in the above scenario.
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the overbought zone.
Major Support Levels – $19,500, followed by $19,200.
Major Resistance Levels – $20,000, $20,450 and $21,200.