Bitcoin lost ground against the US dollar, falling towards $18,500. BTC rebounded sharply but bears remain active at the $20,500- and $20,650 levels.
- Bitcoin surged sharply following the testing of the $18,500 area.
- The current price trades above $20,000 and is close to the simple moving average of 100 hours.
- On the hourly chart for the BTC/USD pair, there is a significant bearish trend line with resistance at $20,000. (Data feed from Kraken).
- The price of the pair may drop again if it moves beyond the $20,500 resistance level.
Bitcoin price eye-upside break
Another drop in Bitcoin prices below $20,000 level was seen. Bitcoin price traded even below the $19200 support zone, and spiked below that level.
The price fell to $18,617 after a test of $18,600. Recent price movements were characterized by a strong upward trend and the price rose above $19,500 resistance. A move was seen above the 50% Fib Retracement level for the key drop of $21,697 swing high and $18,617 lowest.
The price now faces strong resistance at the $20,500 area and 100-hourly simple moving average. A major bearish trendline is also emerging with resistance close to $20,400 in the hourly charts of BTC/USD.
Trend line close to the 61.8% Fib Retracement Level of the Key Drop from $21,697 high to $18,617 lowest. A resistance level near $20,500 is immediate on the upside.
Source: BTCUSD from TradingView.com
Near the $20,950 area is the next major resistance. The price could rise further if it moves above the resistance of the trendline and then to $20,950. The price may rise to $21,650 in the above scenario. Near the $22,500 mark is the next significant resistance.
BTC – A New Decline
It could fall further if bitcoin does not clear the $20,000.500 resistance area. Support for the downside lies near $20,000
Now, the $19800 level represents the nearest major support. Below that, the price may decline significantly. If the previous scenario is true, then the price might fall to $18,500.
Indicators technical
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 $19,800.
Major Resistance Levels – $20,500, $20,950 and $21,650.
