Bitcoin is struggling near the $21,000 resistance area against the US Dollar. If BTC clears the $20,900 and $21,000 resistance levels, it could rally.
- Bitcoin is showing some positive signs above the $20,000 support level.
- The price is still trading above the $20,000 level and the 100 hourly simple moving average.
- There is a connecting bullish trend line with support near $20,275 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh decline if it sustains below the key $21,000 resistance area.
Bitcoin price eyes an upside break
An upside correction started after bitcoin price traded lower near $17,600. There was a nice recovery wave above the $18,500 and $19,000 levels.
The price crossed the 50% Fib retracement level of the main decline from the $22,951 high to $17,600 low. The price even cleared the $20,000 level and the 100 hourly simple moving average. There is also a connecting bullish trend line with support near $20,275 on the hourly chart of the BTC/USD pair.
However, the bears are now defending key gains above the $20,500 area. Bitcoin is also struggling near the 61.8% Fib retracement level of the main decline from the $22,951 high to $17,600 low. An immediate upside resistance is near the $20,800 level. The first major resistance is near the $20,900 and $21,000 levels.
Source: BTCUSD on TradingView.com
A clear move above the $21,000 level could also propel the price towards $21,800. Any further gains could send the price towards the $22,200 level in the coming sessions.
Recent fall in BTC?
If bitcoin fails to clear the $21,000 resistance area, it could start a fresh decline. On the downside, immediate support is near the $20,275 level and the trend line.
The next major support is near the $20,000 level and the 100 hourly SMA. There could be another downside break below the $20,000 support. In the stated case, the price could test the $18,800 level.
Hourly MACD – The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key Support Level – $20,275, followed by $20,000.
Key Resistance Levels – $20,900, $21,000 and $22,000.