Bitcoin is consolidating above the $20,000 level about the US dollar. BTC must break through the $20,800 resistance level to resume its upward trend in the near term. Bitcoin retraced its gains and tested the $19,800 support level. The price has now risen above the $20,000 mark and the 100 hourly simple moving average.
On the hourly chart of the BTC/USD pair, a key bearish trend line is forming with resistance near $20,550. It could gain bullish momentum if the pair breaks through the $20,550 and $20,800 resistance levels.
Bitcoin Price is Encountering Resistance
Bitcoin’s price failed to break through $21,700 and corrected gains. Below the $21,000 support level, there was a downside correction. The price fell below the 23.6 percent Fib retracement level of the upward move from the swing low of $17,600 to the swing high of $21,700. The bears pushed the price below the $20,500 support zone and the 100 hourly simple moving average.
On the other hand, the bulls were active above the $19,650 and $19,800 support levels. Bitcoin also remained above the 50% Fib retracement level of the upward move from the swing low of $17,600 to the swing high of $21,700.
It is now trading above the $20,000 mark and above the 100 hourly simple moving average. On the upside, immediate resistance is near the $20,550 level. On the hourly chart of the BTC/USD pair, a key bearish trend line is forming with resistance near $20,550.
The first significant resistance is located near the $20,800 level. A clear move above $20,800 could kick-start a decent increase. The next major resistance level is near $21,220, above which the bulls may gain strength for a steady rise.
More Bitcoin losses?
If bitcoin fails to break through the $20,800 resistance level, it may fall further. On the downside, immediate support is near the $20,200 level and the 100 hourly SMA.
The first significant support is around the $20,000 mark. The main support is now around $19,650. A break below the $19,650 support level could restart the decline in the near term. In the scenario above, the price could fall to $18,800. Good luck!