Bitcoin is showing positive signs above the $20,500 area against the US Dollar. BTC is likely to rally if there is a clear move above the $21,250 resistance area.
- Bitcoin remains supported above the $20,000 and $20,500 levels.
- The price is now trading above the $20,500 level and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $20,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum if it clears the $21,250 and $21,650 resistance levels.
bitcoin price may increase
Bitcoin price started a downside correction below the $20,500 level. It was also below the $20,000 level, but the price remained stable near the $19,750 area.
A low was formed near $19,750 and the price started a fresh start. BTC was able to clear the $20,000 and $20,500 resistance levels. Besides, there was a break above a major bearish trend line with resistance near $20,450 on the hourly chart of the BTC/USD pair.
The pair climbed above the 50% Fib retracement level of the downside trade from the $21,698 high to $19,750 low. Bitcoin is now trading above the $20,500 level and the 100 hourly simple moving average.
An immediate upside resistance is near the $21,250 level. It is near the 76.4% Fib retracement level of the downside trade from the $21,698 high to $19,750 low. The next major resistance is near the $21,650 level. A clear move above the $21,650 level could start a decent rise.
Source: BTCUSD on TradingView.com
The next major resistance is near the $22,200 level, above which the bulls may gain strength to move towards the $23,000 resistance area.
Recent fall in BTC?
If bitcoin fails to clear the $21,250 resistance area, it could start another decline. On the downside, immediate support is near the $20,600 level and the 100 hourly SMA.
The first major support is near the $20,000 level. The main support is now near the $19,750 level. A break below the $19,750 support could put a lot of pressure on the bulls in the near term. In this case, the price could decline towards the $18,500 level.
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 – $20,600, followed by $20,000.
Major resistance levels – $21,250, $21,650 and $23,000.