- Bitcoin bounced off support at $17,500 and lifted towards $20,000 but hit a snag at $19,438.
- On-chain metrics suggest that Bitcoin is ready for gains above $20,000 while its downside is well protected.
Bitcoin recently tested support at $17,500, almost hitting the target as we had predicted. The freefall appears to have allowed more investors to enter the market with BTC trading at a relatively lower price level. The increase in buy orders increased the tailwind on Bitcoin, lifting it above various key levels, including the 200 Simple Moving Average, the 50 SMA, and $19,000.
BTC/USD 4-hour chart
IntoTheBlock’s IOMAP chart reveals the lack of robust resistance zones ahead of BTC. Hence, a break above the minor seller congestion at $19,156 and $19,248 will place Bitcoin in an upward trajectory to $20,000.
On the downside, the bellwether cryptocurrency is sitting on levels with immense support, suggesting that the current retreat is a temporary setback and that BTC will soon embark on the journey to new yearly highs. Two robust support levels have been highlighted at $18,322 and $18,878. Bitcoin is unlikely to slide through these support areas, thus the possibility of a rebound is massive.
Bitcoin IOMAP chart
It is worth mentioning that substantial declines will come into the picture if Bitcoin extended the bearish price under $19,000. Moreover, if the 50 SMA support at $18,690 fails to hold, the cryptoasset will be forced to seek an anchor at the 200 SMA currently at $18,000.
Bitcoin intraday levels
Spot rate: $19,062
Relative change: -110
Percentage change: -0.6%