Bitcoin Could Restart Increase If The Bulls Clear This Resistance


Bitcoin is consolidating above the $20,000 area against the US Dollar. BTC must get rid of the $20,800 resistance to restart the rally in the near term.

  • Bitcoin corrected gains and tested the $19,800 support area.
  • The price is now 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 upward momentum if it surpasses the $20,550 and $20,800 resistance levels.

Bitcoin price faces resistance

Bitcoin price fails to rise above $21,700 and Corrected gains. There was a downside correction below the $21,000 support area.

The price fell below the 23.6% Fib retracement level of the upward move from $17,600 to the swing high of $21,700. 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 $19650 and $19800 support levels. Bitcoin also remained above the 50% Fib retracement level of the upward move from $17,600 to the $21,700 swing high.

It is now above the $20,000 level and 100-hour simple moving average. There is an immediate resistance on the upside 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.

Bitcoin price

Source: BTCUSD on TradingView.com

The first major resistance is near the $20,800 level. A clear move above the $20,800 level might start a decent increase. The next major resistance is near the $21,220 level, above which the bulls may gain strength for a steady increase.

More losses in bitcoin?

If Bitcoin fails to clear the $20,800 resistance area, it may start dropping again. There is immediate support on the downside near the $2,0200 level and the hourly 100 simple moving average.

The first major support is near the $20,000 level. The main support is now near the $19,650 level. A downside breakout below the $19,650 support may lead to a resumption of the decline in the near term. In the mentioned case, the price may drop towards the $18,800 level.

Technical indicators:

Hourly MACD – MACD is now gaining pace in bullish territory.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Key support levels – $20,000, followed by $19,650.

The main resistance levels are $20,800, $21.220 and $21,700.



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