Bitcoin has found support in the vicinity of $20,750 against US Dollar. BTC has been making gains and is now facing resistance around $21,500 as well as the 100 hourly SMA.
- After a sharp decline, Bitcoin gained support at $20.750.
- It is currently trading at $21,500 and below the simple 100-hour moving average.
- On the hourly chart for the BTC/USD pair, there was a break above the main bearish trend line. Resistance is near $21,270. (Data feed from Kraken).
- A clear break above the $22,000 resistance could help the pair recover.
Bitcoin price struggles
Bitcoin’s price fell below $22,000 support level, indicating that it is now in bearish mode. BTC fell below $21,200, $21,000 support levels just before the bulls arrived.
An initial low formed at $20,797. The market began a brief upside correction. A minor uptrend occurred above $21,000. A break was also seen above the major bearish trendline with resistance at $21,270, on the hourly charts of BTC/USD.
Bitcoin price was unable to overcome strong resistance at the $21,500 and 100-hourly simple moving average levels. Bitcoin is currently struggling to break the $21,500 resistance area.
The 100 SMA, which is $21,450, provides immediate resistance. At $21,650, the initial major resistance to the upside is located. This is close to the 23.6% Fib Retracement Level of the pivotal decline from $24,415 high to $20,797 lowest.
Source: BTCUSD at TradingView.com
It is currently nearing the $22,000 area. Gains above the $22,000 zone could push the price to the 50% Fib level, which is the pivotal decline of the $24,415 swing high and $20,797 low. The price could move into positive territory if it closes above the resistance levels of $22,500 or $22,650.
It could fall further if bitcoin does not clear the $21,500 resistance area and the 100 hourly SMA. The $21,000 level is a support area for the downside.
Near the $20,800 mark is now the next significant support. Another major decline could be initiated by a downside breakout and a close to the $20,800 mark. The price could fall towards $20,000 in the above scenario.
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $21,000, followed by $20,800.
Major Resistance Levels – $21,500, $22,000 and $22,650.