Bitcoin Price Seems Primed For A Strong Wave Above $21K


Bitcoin is moving higher and is trading above the $20,000 area against the US Dollar. BTC could rise if there is a clear move above $20,580 and $20,730.

  • Bitcoin is showing some positive signs above the $20,000 support area.
  • The price is now trading above the $20,000 level and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $19,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a strong upward movement if there is a close above the $20,580 level.

Bitcoin price aims for a new increase

Bitcoin price remained much higher than $19,500 support area. BTC bottomed near the $19,750 level and started another increase above the $20,000 resistance area.

There was a steady movement and the price rose above the 50% Fib retracement level of the downside move from $20.732 to the high swing high to $19,750. The price is now trading above the $20,000 level and Simple moving average per 100 hours.

There is also a major bullish trend line forming with support near $19,800 on the hourly chart of the BTC/USD pair. Bitcoin price is now comfortably trading near the $20,500 area and the 76.4% Fib retracement level of the downward move from $20,732 to the $19,750 swing high.

Bitcoin price

Source: BTCUSD on TradingView.com

On the upside, the price is facing resistance near the $20.550 and $20,580 levels. The next major resistance is near the $20,730 region. A close above the $20.730 resistance area could open the door for a strong increase. In the mentioned case, the price could rise towards the $21,500 level. The next major resistance is near the $22,200 level.

A new drop in bitcoin?

If Bitcoin fails to clear the $20.730 resistance area, it may start a downside correction. There is immediate support on the downside near the $2,0200 level.

The next major support is now near the $19,800 level or trend line area. A close below the $19,800 support area could push the price to $19,500. In the mentioned case, there is a risk of a move towards the $18,750 level.

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 – $20,020, followed by $19,800.

Key resistance levels – $20,580, $20,730 and $21,200.



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