Bitcoin gained pace and ditched the $19,500 resistance against the US Dollar. BTC is now facing resistance and may correct lower to $19,500 in the short term.
- Bitcoin is gaining ground above the $19,500 and $19,600 resistance levels.
- The price is now trading above the $20,000 level and the 100 hourly simple moving average.
- There was a movement above the major downtrend line with resistance near $19,460 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair tested the $20,500 resistance area and it may correct in the short term.
Bitcoin price hike
Bitcoin price formed a base above the $18,720 support area. As a result, BTC file started decent increase And it broke the $19,500 resistance area.
There was a clear move above the major downtrend line with resistance near $19,460 on the hourly chart of the BTC/USD pair. The price even broke the $20,000 resistance and settled above Simple moving average per 100 hours.
Bitcoin climbed above the 76.4% Fibonacci retracement level of the major decline from $20,500 to $18,735. However, the bulls struggled to pump the price above the $20,500 resistance area.
A rally is forming near $20,450 and the price is consolidating gains. It is trading above the 23.6% Fib retracement level of the recent increase from the $18,738 swing low to $20,450. On the upside, the price is facing resistance near $20,450 and $20,500.
Source: BTCUSD on TradingView.com
The next major resistance is near the $20,920 region. A clear move above the $20,920 resistance area could push the price higher. In the mentioned case, the price could rise towards the $21,500 level. The next major resistance is near the $22,200 level.
A new drop in bitcoin?
If Bitcoin fails to clear the $20,500 resistance area, it may start dropping again. There is immediate support on the downside near the $20,000 level.
The next major support is now near the $19,600 level or the 50% Fib retracement level of the recent increase from the $18,738 swing low to $20,450, where the price could drop sharply below. In the mentioned case, the price may drop towards the $18,720 level.
Hourly MACD – The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Key support levels – $20,000, followed by $19,500.
Key resistance levels – $20,500, $20,920, $21,500.