Bitcoin Struggles Below $21K, Brace to Trade a Breakout
Skerdian Meta • 1 min read
Bitcoin is battling against the US Dollar near the $21,000 resistance level. BTC may rally if it breaks through the $20,900 and $21,000 resistance levels. BITCOIN is showing some signs of life above the $20,000 support level.
The price is still above $20,000 and the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, a connecting bullish trend line is forming with support near $20,275.
If the pair remains below the key $21,000 resistance level, it may begin a new decline.
Bitcoin Price Sees an Upward Break
The Bitcoin price began an upward correction after trading as low as $17,600. Above the $18,500 and $19,000 levels, there was a decent recovery wave. The price surpassed the 50% Fib retracement level of the main drop from the high of $22,951 to the low of $17,600. The price broke through $20,000 and the 100 hourly simple moving average.
On the hourly chart of the BTC/USD pair, a connecting bullish trend line is forming with support near $20,275.
However, the bears are now defending significant gains above $20,500. Bitcoin is also struggling near the 61.8 percent Fib retracement level of the main drop from $22,951 to $17,600.
On the upside, immediate resistance is near the $20,800 level. The first major resistance is located between $20,900 and $21,000. A clear move above $21,000 could push the price to $21,800. Any further gains could push the price up to $22,200 in the coming sessions.
Bitcoin Price Drop?
If Bitcoin fails to break through the $21,000 resistance level, it may begin a new decline. On the downside, the trend line and the $20,275 level provide immediate support.
The next significant support is near $20,000 and the 100 hourly SMA. A break below the $20,000 support level could trigger another decline. In this case, the price could reach $18,800.