Bitcoin moved above the $20,500 resistance level against the US Dollar. BTC is now struggling near the $19,800 level, with key support near the $19,600 area.
- Bitcoin made another attempt to gain strength above $20,500 but failed.
- The price is now trading above the $19,500 level and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $19,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- Unless there is a clear move below the $19,500 support area, the pair is likely to rise again.
Bitcoin price faces hurdles
Bitcoin price held support above the $19,500 area. BTC started another rise and climbed above the $20,000 resistance area.
There was a spike above the $20,500 resistance area, but the bulls failed to gain strength. A high was formed near $20,732 and the price corrected. There was a break below the $20,200 and $20,000 support levels.
Bitcoin is trading above the 50% Fibonacci retracement level from the $19,300 low to $20,732 high. It is now trading above the $19,500 level and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $19,550 on the hourly chart of the BTC/USD pair.
On the upside, the price is facing resistance near $20,000 and $20,200. The next major resistance is near the $20,500 area. The doors could open for a nice rise above the $20,500 resistance area.
Source: BTCUSD on TradingView.com
In this case, the price is likely to climb higher towards the $21,200 level. The next major resistance is near the $21,500 level.
More losses in BTC?
If bitcoin fails to clear the $20,500 resistance area, it could continue to move lower. On the downside, immediate support is near the $19,650 level. It is near the 76.4% Fib retracement level of the upward move from $19,300 low to $20,732 high.
The next major support is now near the $19,500 level or the trend line zone. Selling pressure is likely to increase below the $19,500 support area. In the specified case, the price might decline towards the $18,740 level.
Technical Indicators:
Hourly MACD – The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.
Key Support Level – $19,650, followed by $19,500.
Major resistance levels – $20,200, $20,500 and $21,200.
