Bitcoin Recovers Sharply, Why BTC Could Still Struggle Above $20,500


Bitcoin fell towards the $18,500 support area against the US Dollar. BTC has made a sharp recovery, but the bears are still active near the $20,500 and $20,650 levels.

  • Bitcoin rose sharply after there was a test of the $18,500 area.
  • The price is now trading above the $20,000 level and near the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $20,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a new decline unless there is a move above the $20,500 resistance area.

Bitcoin price breaks upside down

Bitcoin price started Another retreat Below the $20,000 support area. The price even traded below the $19,200 support area and climbed below the $18,800 level.

There was a test of the $18,600 area and a low of $18,617. Recently, there was a sharp bullish move and the price rose above the $19,500 resistance. There was a move above the 50% Fib retracement level of the major decline from the $21.697 swing high to $18,617.

However, the price is now facing a strong resistance near the $20,500 area and Simple moving average per 100 hours. There is also a major bearish trend line forming with resistance near $20,400 on the hourly chart of the BTC/USD pair.

The trend line is approaching the 61.8% Fib retracement level of the major decline from the $21,697 swing high to $18,617 low. There is an immediate resistance on the upside near the $20,500 level.

Bitcoin price

Source: BTCUSD on TradingView.com

The next major resistance is near the $20,950 region. A clear move above trend line resistance and then $20,950 could push the price higher. In the mentioned case, the price could rise towards the $21,650 level. The next major resistance is near the $22,500 level.

A new drop in bitcoin?

If Bitcoin fails to clear the $20,500 resistance area, it may start dropping again. There is immediate support on the downside near the $20,000 level.

The next major support is now near the $19,800 level, below which the price could drop sharply. In the mentioned case, the price may drop towards the $18,500 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 – $20,000, followed by $19,800.

The main resistance levels are $20,500, $20,950, and $21,650.



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