Bitcoin Price Reclaims $20K, Why This Could Be The Start of Larger Rally


Bitcoin price has risen more than $20,000 against the US dollar. BTC is showing positive signs and may rise above $20,500.

  • Bitcoin has started steadily increasing above the $19,200 and $19,500 resistance levels.
  • The price is trading above $20,000 and a 100 hourly simple moving average.
  • There is a solid bullish trend line forming with support near $20,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is gaining pace and may rise further above the $20,500 level.

Bitcoin price hike

Bitcoin price formed a base above the $19,000 level and started a file fixed increase. BTC managed to break above the $19,500 and $19,650 resistance levels.

The bulls were able to pump the price up $20,000 resistance area. The price traded as high as $20,475 and the price is now correcting the gains. It is trading above $20,000 and the 100 hourly simple moving average. Bitcoin is now slowly moving below $20,400.

It is trading well above the 23.6% Fib retracement level of the upward move from the $18,937 swing low to $20,475 high. There is also a solid bullish trend line forming with support near $20,000 on the hourly chart of the BTC/USD pair.

Bitcoin price

source: BTCUSD on TradingView.com

On the upside, there is an immediate resistance near the $20,450 level. The next major resistance is near the $20,500 region. A clear move above the resistance at $20,500 may start another increase. In the mentioned case, the price could breach the $21,200 resistance area. The next major resistance is near the $22,500 region.

Dips Limited in BTC?

If Bitcoin fails to rise above the $20,500 resistance area, it may initiate a downward correction. There is immediate support to the downside near the $20,100 region.

The next major support is near the $20,000 area and the trendline. A break-down below the trend line could send the price towards $19,700. It is close to the 50% Fib retracement level of the upward move from the swing low of $18,937 to $20,475. The key support is near $19,500, below which the price may drop to $19,200.

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 – $20,100, followed by $20,000.

The main resistance levels are $20,500, $21,200 and $22,500.



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