Cody StewartBitcoin started a decent increase above the $20,000 resistance against the US Dollar. BTC is trading above $20,500 and eying more gains towards the $22,000 level.
Bitcoin is slowly moving higher above the $20,000 resistance zone.
The price is now trading above the $20,200 level and testing the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $20,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might gain bullish momentum if it clears the $20,750 and $21,000 levels.
Bitcoin Price Gains Momentum
Bitcoin price formed a base above the $19,000 level and started a decent increase. The price traded above the $20,000 resistance zone to move into a positive zone.
There was a clear move above the 23.6% Fib retracement level of the downward move from the $22,500 swing high to $18,916 low. At first, the price saw a rejection near the $20,500 level. However, the bulls were active near the $19,600 level.
Bitcoin started another increase above the $20,500 resistance zone. It is now trading above the $20,200 level and testing the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $20,400 on the hourly chart of the BTC/USD pair.
On the upside, the price could resistance near the $20,750 level. It is near the 50% Fib retracement level of the downward move from the $22,500 swing high to $18,916 low. The next key resistance is near the $21,000 zone.
Source: BTCUSD on TradingView.com
A close above the $21,000 resistance zone could set the pace for a decent increase. In the stated case, the price may perhaps rise towards the $21,650 level. The next major resistance sits near the $22,000 level.
Fresh Decline in BTC?
If bitcoin fails to clear the $20,750 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $20,500 level.
The next major support now sits near the $20,400 level and the trend line. A close below the trend line support zone could accelerate losses. In the stated case, there is a risk of a move towards the $20,000 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.
Major Support Levels – $20,400, followed by $20,000.
Major Resistance Levels – $20,750, $21,000 and $21,650.
Cody Hilpert