Bitcoin is trading above the $20,500 mark against the US dollar. If there is a clear move well above the $21,250 resistance zone, BTC could rally. Bitcoin is still well supported above $20,000 and $20,500. The price has now risen above the $20,500 mark and the 100 hourly simple moving average.

On the hourly chart of the BTC/USD pair, there was a break over a massive bearish trend line with resistance near $20,450. It could gain bullish momentum if the pair breaks through the $21,250 and $21,650 resistance levels.

Bitcoin’s Price May Increase

BITCOIN has begun a downward correction underneath the $20,500 level. There was also a drop below $20,000, but the price remained stable near $19,750.

A low was formed near $19,750, and the price began again. BTC broke through the $20,000 and $20,500 resistance levels. Furthermore, on the hourly chart of the BTC/USD pair, there was a break beyond a major bearish trend line with resistance near $20,450.

The pair moved above the 50% Fib retracement level of the decline from the swing high of $21,698 to the low of $19,750. Bitcoin is trading above the $20,500 mark and above the 100 hourly simple moving average.

On the upside, immediate resistance is near the $21,250 level. It is nearing the 76.4 percent Fib retracement level of the drop from the swing high of $21,698 to the low of $19,750.The next significant resistance is located near the $21,650 level. A clear move above the $21,650 level could kick-start a decent rise.

The next major resistance is located near the $22,200 level, above which the bulls may gain strength in preparation for a move towards the $23,000 resistance zone.

Bitcoin Price Drop?

If Bitcoin fails to break through the $21,250 resistance level, it may fall further. On the downside, immediate support is near the $20,600 level and the 100 hourly SMA.

The first significant support is around the $20,000 mark. The main support is now around $19,750. A break below the $19,750 support level could put the bulls under a lot of pressure in the short term. In the aforementioned scenario, the price could fall to $18,500.