Bitcoin Recovers Above $18.6K – Bears Remain Active Near $20K
Bitcoin fell below the $18,500 support level against the US dollar. BTC has recovered significantly, but bears remain active near the $20,500 and $20,650 levels.
BITCOIN surged higher following a test of the $18,500 level; the price currently trading above $20,000 and close to the 100 hourly simple moving average.
On the hourly chart of the BTC/USD pair, a major bearish trend line is forming with resistance near $20,400. Unless the pair moves above the $20,500 resistance zone, a new decline may begin.
Bitcoin Price Sees an Upward Break
Bitcoin’s price has begun declining below the $20,000 support level. The price fell below the $19,200 support level and spiked below the $18,800 mark.
The price traded as low as $18,617 during a test of the $18,600 zone. Recently, there was a sharp upward movement, and the price surpassed the $19,500 resistance level. There was a move above the 50 percent Fib retracement level of the key drop from the swing high of $21,697 to the low of $18,617.
However, the price is encountering significant resistance near the $20,500 level and the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, a major bearish trend line is forming with resistance near $20,400.
The trend line is close to the 61.8 percent Fib retracement level of the key drop from the swing high of $21,697 to the low of $18,617. On the upside, immediate resistance is near the $20,500 level.
The next major resistance level is around $20,950. A clear break above the trend line resistance, followed by a move above $20,950, could propel the price even higher. In the aforementioned scenario, the price could rise to $21,650. The next major barrier is located near the $22,500 mark.
Bitcoin Price Drop?
If bitcoin fails to break through the $20,500 resistance level, it may fall further. On the downside, there is immediate support near the $20,000 level.
The next significant support is now near $19,800, below which the price could fall significantly. In the aforementioned scenario, the price could fall to $18,500.
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