Bitcoin Consolidates in Narrow Range – Brace to Trade Breakout

Bitcoin has begun a steady rise just above the $20,000 resistance level against the US dollar and is currently trading above $20,500, with a target price of $22,000 in sight.

BITCOIN is gradually rising just above the $20,000 resistance level. The price is now trading well above the $20,200 mark and is approaching the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, a key bullish trend line is forming with support near $20,400.
It may gain bullish momentum if the pair breaks through the $20,750 and $21,000 resistance levels.

Bitcoin Price is Gaining Momentum

Bitcoin price found a base above $19,000 and began a steady rise. The price moved into the positive zone after trading above the $20,000 resistance zone.

The price rose above the 23.6 percent Fib retracement level of the decline from the swing high of $22,500 to the low of $18,916.Initially, the price was rejected near the $20,500 level. On the other hand, the bulls were active near the $19,600 level.

Bitcoin has begun another rise just above the $20,500 resistance level. It is currently trading above the $20,200 mark and is testing the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, a key bullish trend line is forming with support near $20,400.

On the upside, the price may encounter resistance near the $20,750 mark. It is close to the 50% Fib retracement level of the decline from the $22,500 swing high to the $18,916 low. The next significant resistance level is around $21,000.

A close above the $21,000 resistance level could set the tone for a healthy gain. In the aforementioned scenario, the price could rise to $21,650. The next major barrier is located near the $22,000 level.

Bitcoin Price Drop?

If Bitcoin fails to break through the $20,750 resistance level, it may begin a new decline. On the downside, there is immediate support near the $20,500 level.

The next significant support is near $20,400 and the trend line. A break underneath the trend line support zone may hasten losses. However, there is a risk of a move towards the $20,000 level in the aforementioned case.