Bitcoin price traded to a new weekly low before reversing its losses against the US dollar. BTC broke $19,500 and could rise further towards $20,500.
- Bitcoin is up nearly 5% and there was a clear move above the $19,500 resistance area.
- The price is trading below $19,500 and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $19,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is showing bullish signs and may extend gains above $20,000.
Bitcoin price starts new high
Bitcoin price extended its losses below the $19,000 support area. Yesterday the US CPI data was released which recorded an increase of 8.2%. You pushed the price of BTC below $18,500 support area.
The bears gained strength and the price fell to the $18,200 support area. However, the bears failed to push the price further down. The bottom formed near $18142 and there was a strong bullish reaction. The price gained bullish momentum and rose above the $19,000 level.
Bitcoin price cleared the 50% Fibonacci retracement level of the downside move from the high-swinging $20443 to the $18,142 low. Besides, there was a break above the major downtrend line with resistance near $19,150 on the hourly chart of the BTC/USD pair.
The price is now trading below $19,500 and above Simple moving average per 100 hours. It is trading near the 76.4% Fibonacci retracement level of the downside move from $20443, the high to $18,142 low.
source: BTCUSD on TradingView.com
On the upside, there is an immediate resistance near the $20,000 level. A clear move above the $20,000 resistance could push the price higher. The next major resistance is near the $20,450 level. Any further gains may start to increase steadily towards the $21,200 resistance area.
Supporting Bitcoin dips?
If Bitcoin fails to rise above the $20,000 resistance area, it may initiate a downward correction. There is immediate support to the downside near the $19,500 region.
The next major support is near the $19,200 area and the hourly 100 SMA. A bearish breakout below the $19,200 support area may increase selling pressure. In the mentioned case, the price could drop towards the $18,500 support area.
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for Bitcoin/USD is now in the overbought territory.
Key support levels – $19,500, followed by $19,200.
The main resistance levels are $20,000, $20,450, and $21,200.