Bitcoin Price Rally Could Gather Pace Above $20.5K: Why Bulls Are In Control
Bitcoin price started a strong rally above $19,650 against the US Dollar. BTC is trading above $20,000 and could gain momentum above the $20,500 resistance.
- Bitcoin started a strong increase above the $19,500 and $19,650 resistance levels.
- The price is trading above $20,000 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $20,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start another increase if there is a clear move above the $20,500 resistance.
Bitcoin Price Starts Fresh Surge
Bitcoin price remained well bid above the $19,000 and $19,200 support levels. BTC formed a base and started a fresh increase above the $19,650 resistance levels.
It gained over 5% and there was a clear move above the $20,000 resistance. During the increase, there was a move above a connecting bearish trend line forming with resistance near $19,300 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading above $20,000 and the 100 hourly simple moving average. A high was formed near $20,400 and the price is now consolidating gains.
There was a minor decline below the 23.6% Fib retracement level of the recent increase from the $19,266 swing low to $20,400 high. On the upside, an immediate resistance is near the $20,300 level. There is also a key contracting triangle forming with resistance near $20,300 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The first major resistance sits near the $20,400 level. The next major resistance might be $20,500. A clear move above the $20,500 resistance might send the price towards the $21,200 resistance. Any more gains might set the pace for a steady increase towards the $22,000 resistance zone.
Downside Correction in BTC?
If bitcoin fails to rise above the $20,500 resistance zone, it could start a downside correction. An immediate support on the downside is near the $20,200 zone.
The next major support is near the $19,800 zone. It is near the 50% Fib retracement level of the recent increase from the $19,266 swing low to $20,400 high. A downside break and close below $19,800 might open the doors for a fresh test of the $19,500 support.
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the overbought zone.
Major Support Levels – $20,200, followed by $19,800.
Major Resistance Levels – $20,300, $20,400 and $20,500.