Bitcoin started a nice increase above the $20,000 resistance against the US Dollar. BTC is trading above $20,500 and is looking for more gains towards the $22,000 level.
- Bitcoin is slowly moving higher above the $20,000 resistance area.
- The price is now trading above the $2,200 level and testing the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $20,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may gain upward momentum if it breaches the $20,750 and $21,000 levels.
Bitcoin price gaining momentum
Bitcoin price formed a base above $19,000 and started a decent increase. The price traded above the $20,000 resistance area to move into positive territory.
There was a clear move above the 23.6% Fib retracement level of the downside move from the $22,500 swing high to $18,916 low. Initially, the price saw a rejection near the $20,500 level. However, the bulls were active near the $19,600 level.
Bitcoin started another increase above the $20,500 resistance area. It is now trading above the $2,200 level and is testing the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $20,400 on the hourly chart of the BTC/USD pair.
On the upside, the price could resist near the $20,750 level. It is close to the 50% Fib retracement level of the downside move from $22,500 to the low of $18916. The next major resistance is near the $21,000 region.
Source: BTCUSD on TradingView.com
A close above the $21,000 resistance area could set the appropriate pace of increase. In the mentioned case, the price may rise towards the $21,650 level. The next major resistance is near the $22,000 level.
A new drop in bitcoin?
If Bitcoin fails to clear the $20,750 resistance area, it may start a new low. There is immediate support on the downside near the $20,500 level.
The next major support is now near the $20,400 level and the trend line. A close below the trendline support area can accelerate losses. In the mentioned case, there is a risk of a move 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 above the 50 level.
Key support levels – $20,400, followed by $20,000.
Key resistance levels – $20,750, $21,000, and $21,650.