TA: Bitcoin Faces Another Rejection, Can Bulls Save The Day
Bitcoin spiked above the $20,500 resistance against the US Dollar. BTC is now struggling near $19,800, with a major support near the $19,600 zone.
- Bitcoin made another attempt to gain strength above $20,500 but failed.
- The price is now trading above the $19,500 level and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $19,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rise again unless there is a clear move below the $19,500 support zone.
Bitcoin Price Faces Hurdles
Bitcoin price remained supported above the $19,500 zone. BTC started another increase and climbed above the $20,000 resistance zone.
There was a spike above the $20,500 resistance zone but the bulls failed to gain strength. A high was formed near $20,732 and the price corrected gains. There was a drop below the $20,200 and $20,000 support levels.
Bitcoin traded below the 50% Fib retracement level of the upward move from the $19,300 swing low to $20,732 swing high. It is now trading above the $19,500 level and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $19,550 on the hourly chart of the BTC/USD pair.
On the upside, the price is facing resistance near the $20,000 and $20,200 levels. The next key resistance is near the $20,500 zone. A close above the $20,500 resistance zone could open the doors for a decent increase.
Source: BTCUSD on TradingView.com
In the stated case, the price could climb towards the $21,200 level. The next major resistance sits near the $21,500 level.
More Losses in BTC?
If bitcoin fails to clear the $20,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $19,650 level. It is near the 76.4% Fib retracement level of the upward move from the $19,300 swing low to $20,732 swing high.
The next major support now sits near the $19,500 level or the trend line zone. A close below the $19,500 support zone could increase selling pressure. In the stated case, the price may perhaps decline towards the $18,740 level.
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.
Major Support Levels – $19,650, followed by $19,500.
Major Resistance Levels – $20,200, $20,500 and $21,200.
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