Bitcoin is showing positive signs above the $20,500 area against the US Dollar. BTC could rise if there is a clear move above the $21,250 resistance area.
- Bitcoin remains well supported above the $20,500 and $20,500 levels.
- The price is now above the $20,500 level and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $20,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum if it surpasses the $21,250 and $21,650 resistance levels.
Bitcoin price could rise at a rapid pace
Bitcoin price started a Correction of the negative side Below the $20,500 level. There was also a move below the $20,000 level, but the price was stable near the $19,750 region.
A bottom was formed near $19,750 and the price started fresh. BTC managed to break the $20,500 and $20,500 resistance levels. Besides, there was a break above the major downtrend line with resistance near $20,450 on the hourly chart of the BTC/USD pair.
The pair rose above the 50% Fib retracement level of the downside move from the $21,698 swing high to $19,750 low. Bitcoin is now above the $20,500 level and $ 100-hour simple moving average.
There is an immediate resistance on the upside near the $21,250 level. It is close to the 76.4% Fib retracement level of the downside move from the $21.698 swing high to $19,750. The next major resistance is near the $21,650 level. A clear move above the $21,650 level could trigger a decent increase.
Source: BTCUSD on TradingView.com
The next major resistance is near the $22,200 level, and above it the bulls may gain strength to move towards the $23,000 resistance area.
A new drop in bitcoin?
If Bitcoin fails to clear the $21,250 resistance area, it may start dropping again. There is immediate support on the downside near the $20,600 level and the 100 hourly SMA.
The first major support is near the $20,000 level. The main support is now near the $19,750 level. A break-down below the support level at $19,750 may put a lot of pressure on the bulls in the near term. In the mentioned case, the price may drop towards the $18,500 level.
Hourly MACD – MACD is now gaining pace in bullish territory.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $20,600, followed by $20,000.
Key resistance levels – $21,250, $21,650 and $23,000.