Bitcoin is consolidating above the $20,000 area against the US Dollar. BTC must clear the $20,800 resistance area to resume growth in the near term.
- Bitcoin corrected gains and tested the $19,800 support area.
- The price is now trading above the $20,000 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $20,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum if it clears the $20,550 and $20,800 resistance levels.
bitcoin price faces resistance
Bitcoin price failed to gain momentum above $21,700 and corrected gains. There was a downside correction below the $21,000 support area.
The price dropped from the 23.6% Fib retracement level of the upward move from $17,600 low to $21,700 high. The bears even pushed the price below the $20,500 support area and the 100 hourly simple moving average.
However, the bulls were active above the $19,650 and $19,800 support levels. Bitcoin also stayed above the 50% Fib retracement level of the upward move from the $17,600 low to $21,700 high.
It is now trading above the $20,000 level and the 100 hourly simple moving average. An immediate upside resistance is near the $20,550 level. There is also a major bearish trend line forming with resistance near $20,550 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The first major resistance is near the $20,800 level. A clear move above the $20,800 level could start a decent rise. The next major resistance is near the $21,220 level, above which the bulls are likely to gain strength for a sustained rise.
More losses in BTC?
If bitcoin fails to clear the $20,800 resistance area, it could start another decline. On the downside, immediate support is near the $20,200 level and the 100 hourly SMA.
The first major support is near the $20,000 level. The main support is now near the $19,650 level. A break below the $19,650 support is likely to resume the decline in the near term. In this case, the price could decline towards the $18,800 level.
Technical Indicators:
Hourly MACD – The MACD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key Support Level – $20,000, followed by $19,650.
Major resistance levels – $20,800, $21,220 and $21,700.
