Bitcoin Price Eyes Fresh Increase To $22K, Why Dips Remain Supported


Bitcoin has started steadily increasing above the $21,000 resistance level against the US Dollar. BTC could rise further towards $22,000 if it stays above the $20,500 support.

  • Bitcoin is slowly moving higher above the $21,000 resistance area.
  • The price is now trading above the $20,800 level and testing the 100 hourly simple moving average.
  • There was a break above the short-term downtrend line with resistance near $21,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair may gain upward momentum if it crosses the $21,500 and $21,600 levels.

Bitcoin price is showing positive signs

Bitcoin price formed a base above the $19,200 level and started to… decent increase. The price traded above the $20,500 resistance area to move into positive territory.

The price rose above the $21,000 level and settled above the level Simple moving average per 100 hours. A top formed near $21664 before there was a downside correction. The price was trading below the $21,000 level, but the bulls were active near the $20,750 area and the 100 hourly simple moving average.

The bottom formed near $20,748 and the price is now rising. It broke the 23.6% Fib retracement level of the downside move from the $21,664 swing high to $20,748.

There was also a break above the short-term descending trend line with resistance near $21,000 on the hourly chart of the BTC/USD pair. On the upside, Bitcoin price could resist near the $21,200 level. It is close to the 50% Fib retracement level of the downside move from the $21,664 to $20,748 swing high.

Bitcoin price

Source: BTCUSD on TradingView.com

The next major resistance is near the $21,500 area. A close above the $21,500 resistance area could set the appropriate pace of increase. In the mentioned case, the price may rise towards the $22,000 level. The next major resistance is near the $22,800 level.

Supporting Bitcoin dips?

If Bitcoin fails to clear the $21,500 resistance area, it may start a downside correction. There is immediate support on the downside near the $21,000 level.

The next major support is now near the $20,750 level and the hourly 100 simple moving average. A clear move below the $20,750 support could send the price towards $20,500.

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 – $21,000, followed by $20,750.

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



Leave a Comment

Your email address will not be published.