Bitcoin Price Breaking This Confluence Resistance Could Spark Strong Surge


Bitcoin price is showing positive signs above $20,000 against the US Dollar. BTC could start a strong rally if it clears the $20,500 resistance.

  • Bitcoin is gaining ground above the $19,800 and $20,000 resistance levels.
  • The price is trading above $20,100 and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $2,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could gain bullish momentum if there is a clear move above the $20,500 resistance level.

Bitcoin price still supported

Try bitcoin price The bullish breakout above the $20,500 resistance area. However, BTC struggled near the $20,450 region and started a downside correction.

There was a move below the $20,000 support area, but the price remained supported well above the 100 hourly simple moving average. It traded as low as $19,754 and recently started a fresh increase. There was a clear move above the $220,200 and $20,200 resistance levels.

Bitcoin price rose above the 50% Fib retracement level of the recent decline from $20,475 to $19,754. It is now trading above $20,100 and Simple moving average per 100 hours. Besides, there is also a major bullish trend line forming with support near $20,050 on the hourly chart of the BTC/USD pair.

It also cleared the 76.4% Fib retracement level of the recent decline from the $20,475 high to $19,754. On the upside, there is an immediate resistance near the $20,450 level. The next major resistance is near the $20,500 region.

Bitcoin price

source: BTCUSD on TradingView.com

A proper close above the $20,500 resistance could trigger another rally. In the mentioned case, the price could cross the $21,000 resistance area. In the mentioned case, the bulls might aim to move towards the $22,000 level.

Supporting Bitcoin dips?

If bitcoin fails to rise above the $20,450 resistance area, it may start a downside correction. There is immediate support to the downside near the $2,0200 area.

The next major support is near the $20,100 area and the trendline. A downside breakout below the trend line could send the price towards $19,750. The main support is near $19,500, below which the price may start a steady decline.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

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

Key support levels – $20,0200, followed by $20,000.

The main resistance levels are $20,500, $21,200 and $22,000.



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