Bitcoin is showing positive signs above the $21,000 area against the US Dollar. BTC may start a new rally and clear the $21,750 resistance area.
- Bitcoin is still well supported above the $21,000 and $20,500 levels.
- The price is now above the $20,800 level and the 100 hourly simple moving average.
- There was a break below the major uptrend line with support near $21,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum if it remains above the $20,500 and 100 hourly SMA.
Bitcoin price still supported
Bitcoin price started a decent increase Above the $20,000 resistance area. The price was able to surpass the $20,500 level to move into positive territory.
There was a steady move above the $21,000 level and Simple moving average per 100 hours. With that, the bears are once again active near the $21,700 and $21,750 levels. A top formed near $21.780 and the price started a downside correction.
Bitcoin is trading below $21,500. There was a break below the 23.6% Fib retracement level of the upward move from the $19,750 swing low to $21.780 high.
Besides, there was a break below the major uptrend line with support near $21,300 on the hourly chart of the BTC/USD pair. It is now consolidating above the $21,000 level and the 100 hourly simple moving average. There is an immediate resistance on the upside near the $21,250 level.
Source: BTCUSD on TradingView.com
The next major resistance is near the $21.750 level. A clear move above the $21.750 level could lead to a decent increase. In the mentioned case, the price may rise above the $22,200 level. Any further gains could send the price towards the $23,000 resistance area.
A new drop in bitcoin?
If Bitcoin fails to clear the $21,750 resistance area, it may start to drop again. There is immediate support on the downside near the $21,000 level and the hourly 100 SMA.
The first major support is near the $20,750 level. It is close to the 50% Fib retracement level of the upward move from the swing low of $19,750 to $21,780. A break-down below the support level of $20,750 may put a lot of pressure on the bulls in the near term. In the mentioned case, the price may drop towards the $20,000 level.
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just below the 50 level.
Key support levels – $21,000, followed by $20,750.
Key resistance levels – $21,250, $21,750 and $23,000.