Bitcoin Crosses Above $20K – Why Bears Can Jump Near $21K Resistance
Skerdian Meta • 2 min read
Bitcoin gained momentum and broke through the $19,500 resistance level against the US dollar. BTC is currently encountering resistance and may lower to $19,500 in the short term. BITCOIN increased its momentum above the $19,500 and $19,600 resistance levels. The price currently exceeds the $20,000 mark and the 100 hourly simple moving average.
On the BTC/USD pair, there was a move above a key bearish trend line with resistance near $19,460. The pair tested the $20,500 resistance zone, which may be correct in the short term. Bitcoin’s price established a base above the $18,720 support level. As a result, BTC began to rise and broke through the $19,500 resistance zone.
On the BTC/USD hourly timeframe, there was a clear move above a key bearish trend line with resistance near $19,460. Price broke through the $20,000 barrier and settled above the 100 hourly simple moving average.
Bitcoin surpassed the 76.4 percent Fib retracement level of the significant drop from the $20,500 swing high to the $18,735 low. On the other hand, the bulls struggled to push the price above the $20,500 resistance level.
The price has formed a high near $20,450 and is consolidating gains. It is trading above the 23.6 percent Fib retracement level of the recent increase from the swing low of $18,738 to the high of $20,450. On the upside, resistance is located near the $20,450 and $20,500 levels.
The next major resistance level is around $20,920. A clear break above the $20,920 resistance level could propel the price even higher. In the given scenario, the price could rise to $21,500. The next major barrier is located near the $22,200 level.
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 major support prevails near the $19,600 level, or the 50% Fib retracement level of the recent increase from the $18,738 swing low to the $20,450 high, below which the price could fall significantly. In the aforementioned scenario, the price could fall to $18,720. Good luck!