Bitcoin started an upward correction from the $ 17,600 zone against the US Dollar. BTC currently faces strong resistance near $ 20,500 and $ 21,000.
- Bitcoin was able to recoup losses from the $ 17,600 support zone.
- The current price is still below the $ 20,000 level and is a simple 100 hour moving average.
- There is a break above the key bearish trend line with resistance near $ 19,200 on the hourly chart of the BTC / USD pair (data feed from Kraken).
- The pair remains at risk of a recent decline unless it is above the $ 21,000 resistance zone.
Bitcoin Price Eye Recovery is relaxed
The Bitcoin price followed a bearish path and declined sharply below it $ 20,000 support zone. It declined over 10% and even spiked below the $ 18,000 level.
A low formed near $ 17,600 before the price started correcting upwards. There was a wave of recovery above the $ 18,000 and $ 18,500 resistance levels. In addition, there was a break above the main bearish trend line with resistance near $ 19,200 on the hourly chart of the BTC / USD pair.
Bitcoin rose above the 50% Fib retracement level of a key decline from a high of $ 22,950 to $ 17,600. The price even spiked above the $ 20,000 level and the 100 hour simple moving average.
However, the bears are active near the $ 20,500 and $ 20,750 levels. The 61.8% Fib retracement level of the key decline from a high of $ 22,950 to a low of $ 17,600 also acts as resistance. The price is currently trading below the $ 20,000 level and 100 moving average per hour.
Source: BTCUSD on TradingView.com
Direct resistance is on the rise near the $ 20,200 level. The first major resistance is near the $ 20,500 level. Other benefits could send the price to the $ 21,000 level. A close above the $ 21,000 level could set the pace for a larger increase.
A recent decline in BTC?
If bitcoin fails to clear the $ 20,500 resistance zone, it could start a new decline. Direct support at the bottom is near the $ 19,500 level.
The next major support is near the $ 18,800 level. A downside break below the $ 18,800 support could trigger a sharp decline. In that case, the price could try $ 17,600.
Technical indicators:
Hourly MACD – The MACD is now lost in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently just above the 50 level.
Key Support Level – $ 19,500, followed by $ 18,800.
Main Resistance Levels – $ 20,200, $ 20,500 and $ 21,000.
