Bitcoin

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Bitcoin price started a downside correction below $20,500 against the US Dollar. BTC could start a fresh surge if it clears the 100 hourly SMA and then $21,000.

  • Bitcoin is recovering losses from the $20,250 support zone.
  • The price is trading below $20,700 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $20,680 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another upward move if it clears the 100 hourly SMA and then $21,000.

Bitcoin Price Remains Supported

Bitcoin price started a downside correction after it failed to surpass the $21,000 resistance zone. BTC corrected lower below the $20,600 and $20,500 levels.

The decline gained pace below the $20,500 level and the 100 hourly simple moving average. However, the bulls were active near the $20,250 level. A low was formed near $20,250 and the price started a steady upward move. There was a wave above the $20,400 and $20,500 levels.

Bitcoin price climbed above the 23.6% Fib retracement level of the downward move from the $21,074 swing high to $20,250 low. On the upside, an immediate resistance is near the $20,600 zone and the 100 hourly simple moving average.

The first major resistance sits near the $20,700 level. There is also a major bearish trend line forming with resistance near $20,680 on the hourly chart of the BTC/USD pair. The trend line is near the 50% Fib retracement level of the downward move from the $21,074 swing high to $20,250 low.

Source: BTCUSD on TradingView.com

The next major resistance is still near $21,000. A clear move above the $21,000 resistance might start a fresh surge. In the stated case, the price may perhaps rise towards the $22,500 resistance zone.

More Downsides in BTC?

If bitcoin fails to clear above the $20,700 resistance zone, it could start another downward move. An immediate support on the downside is near the $20,400 zone.

The next major support is near the $20,250 zone. The main support sits at $20,000, below which there is a risk of a larger decline. In this case, the price may perhaps decline towards the $19,200 level.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $20,400, followed by $20,250.

Major Resistance Levels – $20,600, $20,700 and $21,000.

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Image and article originally from www.newsbtc.com. Read the original article here.