Bitcoin extended its losses and traded at less than $19,200 against the US dollar. BTC found support near $19,000 and started an upward correction.
- Bitcoin traded as low as $18,916 and started an upward correction.
- The price is now trading above the $20,000 level and testing the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $19,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may gain upward momentum if it crosses the 100-hourly simple moving average and $20,600.
Bitcoin price recovers above $20,000
Bitcoin price started a new low Below the $20,000 support area. The price even broke the $19,600 and $19,250 support levels.
Finally, there was a rally below the $19,000 level. A bottom was formed near $18,916 and the price is now correcting losses. There was a steady move above the $19,250 and $19,500 levels. The bulls pumped the price above the 23.6% Fib retracement level of the downward move from the $22.499 swing high to $18,916 low.
Besides, there was a break above the major downtrend line with resistance near $19,400 on the hourly chart of the BTC/USD pair. The price even rose above the $20,000 resistance.
Bitcoin is now trading above $20,000 and testing Simple moving average per 100 hours. It appears that it is facing resistance near the $20,350 level. On the upside, the price could resist near the $20,600 level. The next major resistance is near the $20,700 area.
The 50% Fib retracement level of the downside move from the $22,499 swing high to $18,916 low is also near the $20,700 level. A close above the $20,700 resistance area could set the appropriate pace of increase.
Source: BTCUSD on TradingView.com
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 start a recovery wave above the $20,600 level, it may start a new decline. There is immediate support on the downside near the $20,000 level.
The next major support is now near the $19,500 level. A close below the $19,500 support area could accelerate losses. In the mentioned case, there is a risk of a move towards the $18,800 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 – $20,000, followed by $19,500.
The main resistance levels are $20,350, $20,600 and $20,700.