Bitcoin Completes 38.2% Retracement – BTC to Struggle Under $20,500
Skerdian Meta • 2 min read
Bitcoin has begun a rally above the $20,000 resistance level against the US dollar. BTC is currently seeing heavy resistance near the 100 hourly SMA. BITCOIN started a brief uptrend and surpassed the $20,000 resistance level. The price currently trades below 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 crucial negative trend line with resistance above $20,000. The pair must break over the $20,400 zone and the 100 hourly SMA to continue higher.
Bitcoin’s Price is Under Pressure
The Bitcoin price found support near $19,525 and began a brief upward correction. BTC broke over the $19,700 and $19,800 resistance levels, kicking off the current recovery wave.
The price has moved above the $20,000 resistance level. On an hourly chart, the BTC/USD pair also broke above a major bearish trend line with resistance above $20,000. The pair surged over the 23.6% Fib retracement level of the crucial fall from the swing high of $21,875 to the low of $19,525.
The price is running into a lot of trouble, around $20,400 and the 100-hour simple moving average. The bulls attempted but failed to break through the 100 hourly simple moving average. Bitcoin is trading below the $20,500 mark and the 100 hourly simple moving average.
On the upswing, the $20,350 level and the 100 hourly SMA act as immediate resistance. The next significant resistance is located near the $20,700 level.
The 50% Fib retracement level of the crucial slide from the $21,875 swing high to the $19,525 low is very close to the $20,700 level and might act as resistance. Any further advances might push the price to the $21,000 resistance level.
Bitcoin Price Drop?
If Bitcoin fails to break over the $20,400 barrier level, it may fall further. On the downside, there is immediate support near the $20,000 level.
The next big support is around $19,850. A break below the $19,850 support level might lower the price. In the aforementioned scenario, the price may fall towards the $19,525 level in the following sessions.